Chapter 7 SmartBook Flashcards
True or false: The number of attorneys per capita can be used to gauge the importance of the legal system in a country.
T
______ law is based on the previous decisions of higher courts as applied to the same or similar circumstances.
Common
______ law is built around a comprehensive collection of written rules.
Code
Unlike common law, code law is ______.
considered complete as a result of catchall provisions found in most code-law system
Common Law = Ownership is determined by use
Code Law = Ownership is established by registration
Rank the following countries’ use of the legal system to settle commercial disputes, based on the number of attorneys per capita in each country. Place the country that relies most heavily on the legal system at the top.
- US
- UK
- Japan
- China
Shari’ah law mandates social and economic behavior based on the interpretation of the _______ .
Koran
Tradition and past rulings by the courts form the basis of _____
law.
Common
Which statement is true of Islamic law?
It addresses issues such as property rights and economic decision making.
Identify a feature of code law.
It is usually divided into three separate codes: commercial, civil, and criminal.
In Islamic law, profiting from excess interest or usury is known as
Riba
Unlike code law, common law ______.
is not all-inclusive
An investment in a ______ is prohibited under Islamic law.
casino
The most noticeable difference between common-law and code-law systems is found in the laws governing ______.
intellectual property
Which statement is true regarding Marxist–socialist tenets?
Law is subordinate to the state’s specific economic conditions.
Identify a feature of Islamic law.
Its dominant objective is social justice.
Which of the following statements is true?
It is difficult to settle commercial disputes between private citizens due to differing legal systems in each nation involved.
Identify the nucleus of the Islamic system of law.
Prohibition of the receipt and payment of interest
A nonbinding agreement to resolve disputes by way of a third party is known as _____ .
conciliation
Islamic law prohibits investment in businesses that deal with ______.
A. gambling
B. cost-plus sales
C. alcohol
D. poultry
A and C
Which statement about the arbitration procedure is true?
Most arbitration is conducted by formal arbitration groups dedicated to resolving commercial disputes.
Which of the following information is useful to include in an arbitration clause?
A. The place of arbitration
B. The language to be used during arbitration
C. The number of arbitrators
D. The term of the original contract
A, B and C
True or false: All socialist countries have the same pattern for the development of a commercial legal system.
F
Which of the following statements is true regarding the use of litigation to settle a international dispute?
The disputing parties face the likelihood of unfair treatment in a foreign court.
Which of the following statements is true?
There is no judicial body to address commercial disputes between citizens of different countries.
Identify a problem related to the protection of intellectual property.
Counterfeiting
In the context of international dispute resolution, conciliation is also known as ______.
mediation
Identify a wrong assumption made by multinational companies.
The rightful ownership of property can be easily established because their company has established rights in the United States.
The use of an independent third party to render a judgment that both disputing parties agree to honor is known as the ______
procedure.
Arbitration
A country considers an individual to be the rightful owner of intellectual property if he or she can prove that he or she was the first person to use it. This country is most likely a ______ country.
common-law
After a dispute arises between parties, the likelihood of securing agreement for arbitration increases when
a provision for arbitration of any dispute is incorporated as part of a contract
The ______ protects established intellectual property rights across most of Latin America and the United States.
Inter-American Convention
Identify a feature of litigation.
It involves lawsuits in public courts.
According to the European Patent Convention (EPC), trademark protection is forfeited if not used within ______ years.
5
True or false: Piracy is always harmful to a company.
F
Intellectual property laws in the United States are designed to ______.
encourage innovation
Identify a step that multinational companies must take in order to be successful in the world marketplace.
They need to take adequate steps to legally protect their intellectual property.
Identify the remedies available to American companies to combat violations of intellectual property rights.
A. Negotiate and pursue alternative methods of resolving disputes.
B. Register IP with appropriate agencies in the host country.
C. Establish rights in the United States.
D. Register a complaint with the U.S. government and World Trade Organization.
E. Notify the local authorities.
A, B, D and E
Common Law = Ownership is established by prior use.
Code Law = Ownership is established by registration.
Cybersquatting abuses, parody sites, protest sites, and hate sites can be difficult to prevent because ______.
the right to free speech is protected
The ______ protects intellectual property rights across 100 European countries and created the Bureau for International Registration of Trademarks.
Madrid Arrangement
Which of the following is true of e-commerce?
It is difficult to establish the contractual validity of electronic communications.
The Patent Cooperation Treaty (PCT) = It protects property rights across all cooperating countries and provides patent applicants with a report on similar patents around the world.
The European Patent Convention (EPC) = It allows an individual or business from anywhere in the world to file a single patent application in Europe.
Which of the following is/are restricted by China’s censorship of media?
A. Educational programs
B. Cooking shows on TV
C. Disney movies
D. Google
C and D
Korea = Everyone should benefit from the thoughts of one person.
Japan = Technological advancements should be shared rather than kept confidential.
The most likely reason for the restriction on advertising directed at children in some countries is ______.
childhood obesity
Identify a way in which multinationals can make money in developing countries while still protecting their intellectual property rights.
by adjusting their prices based on the comparative income levels in developing countries
First Phase =I t required manufacturers and distributors to accept and recycle transport packaging
Second Phase = It required manufacturers, distributors, and retailers to accept and recycle secondary packaging.
Third Phase = It requires retailers, distributors, and manufacturers to accept sales packaging for recycling.
Jack, an IT engineer, registers familiar domain names and known trademarks online and uses them to misdirect consumer traffic from the intended website to the websites of competing companies. Identify the crime committed by Jack.
Cybersquatting
True or false: Multinational companies can be subject to antitrust charges in multiple countries.
T
identify a true statement regarding the application of laws to e-commerce.
It is difficult to determine which country’s laws apply in legal disputes between parties located in different countries.
Identify a true statement regarding the application of U.S. laws in host countries.
Businesses that operate outside of their home country are not exempt from home-country laws.
Which of the following online activities is restricted by the Chinese government?
online video gaming for anybody under the age of 18
In the the context of the Foreign Corrupt Practices Act (FCPA), most experts agree that ______.
the majority of U.S. firms are operating within the law
______ restricts advertising directed at children.
Denmark
Identify a purpose of antitrust enforcement in international commerce.
It aims to ensure that American businesses are not hampered by unfair restrictions imposed by more powerful competitors.
Which of the following countries has the most rigorous laws regarding the recycling of packaging waste?
Germany
A primary boycott = It bans direct trade between Arab states and Israel.
A secondary boycott = It bans Arab governments from doing business with companies that engage in trade with with Israel.
A tertiary boycott = It bans Arab governments from doing business with companies that have relationships with companies engaged in trade with with Israel.
In the twentieth century, antitrust laws were either not established or were rarely enforced in most countries except for ______.
the United States
The extraterritoriality of U.S. laws can cause disputes when ______.
U.S. law conflicts with the economic or political interests of a host country
Which of the following laws apply to U.S. businesses regardless of where they operate?
A. Laws that prohibit using local content from host countries in products
B. Laws against participating in an unauthorized boycott
C. Laws against trading with the enemy
D. Laws against accepting bribes
B, C and D
The revised set of export regulations published by the Department of Commerce in order to alleviate many of the problems related to exporting and to expedite the export process is known as the ______ _______ Regulations (EAR).
Export Administration
True or false: Due to the Foreign Corrupt Practices Act (FCPA), U.S. businesses must resort to bribery in order to survive in the most corrupt societies.
F
True or false: In the context of U.S. national security laws, responsibility regarding the sale of a product extends to the final destination of the product, even if it is transferred through a number of countries along the way.
T
Antitrust enforcement protects American consumers by ______.
making sure that they have access to the products and ideas of foreign and domestic competitors
dentify the features of the U.S. antiboycott law.
A. It requires U.S. companies to report any requests for participation in a boycott.
B. It prohibits U.S. companies from taking part in foreign boycotts not sanctioned by the U.S. government.
C. It allows U.S. firms to participate in foreign boycotts if they result in increased exports and foreign exchange.
D. It permits participation in a boycott if it has direct impact on the survival of a company.
A and B
General License = It permits manufacturers to export products that are not subject to EAR restrictions.
Validated License = It authorizes, with limitations, the exportation of goods controlled by the EAR.
U.S. law may conflict with the economic or political aims of a host country when ______.
the U.S. government restricts joint ventures in a foreign country due to concerns over anticompetition laws
Identify the decisions to be made by an exporter based on the Commerce Control List (CCL).
A. The exporter must decide if the end-user has the technical capability to use the the product.
B. The exporter must decide if the item has end-use restrictions.
C. The exporter must determine if the product has a dual use.
D. The exporter must determine the manufacturing process used in the production of the item.
B and C
The Export Administration Regulations (EAR) focus on a specific set of goods in order to protect U.S. ______.
national security
______ allows an exporter to submit online requests for commodity classification to the Bureau of Export administration.
ERIC (Electronic Request for Item Classification)
Foreign licensees of U.S. technology are prohibited from selling products to another country if the ______.
sale threatens U.S. national security
Identify a purpose of antitrust enforcement in international commerce.
It aims to ensure that American businesses are not hampered by unfair restrictions imposed by more powerful competitors.
A general or a validated export license is given to products exported from the United States depending on the ______.
A. type of product
B. manufacturing process
C. end user of the product
D. destination of the product
A, C and D
The Commerce Control List (CCL) ______.
indicates whether an item is eligible for export
______ can give exporters authority to export goods with unconditional licenses.
STELA (System for Tracking Export License Applications)
