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Exam 23: International and Space Law

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Question 1

True/False

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When a wholly owned subsidiary is established in a foreign country, the parent company, which remains in the United States, gives up ownership, authority, and control over all phases of the operation in the foreign country.

A) True
B) False

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False

Question 2

Multiple Choice

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Lunchies Corporation, a U.S. firm, signs a contract with Manger au Brasserie, S.A., a French firm, to give Manger the right to use the Lunchies trademark in restaurants in France. This is

A) a distribution agreement.
B) indirect exporting.
C) direct exporting.
D) licensing.

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

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Question 3

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In an action by a domestic business to attach a foreign nation's property, the plaintiff must prove that the defendant is not entitled to sovereign immunity.

A nation that launches objects into space is absolutely liable for personal injury and property damage caused by its objects on Earth or in flight.

A U.S. court can assert jurisdiction over a foreign government in a case involving the control of natural resources within that government's territory.

Coffee Company, a U.S. firm, owns property in the Dominican Republic. When the Dominican government seizes the property, the company asks a U.S. court to order the property's return. The court rules that the Dominican Republic is exempt from the court's jurisdiction. This is an application of

In international business, franchising involves

In a case alleging that a foreign government wrongfully confiscated a domestic firm's property, the foreign government must prove the taking was an expropriation.

Market Maker, Inc., a U.S. firm, can license a foreign manufacturing company to use its

The United States taxes each barrel of imported oil at a flat rate. This is

Sovereign nations agree to be governed by international law to facilitate trade, commerce, and civilized discourse.

Suisse Internationale, a Swiss maker of athletic equipment, enters into a price fixing agreement with Total World Sports, a U.S. wholesaler of Suisse's products. U.S. courts will apply U.S. antitrust laws if

The federal Alien Tort Claims Act allows foreign citizens, but not U.S. citizens, to file civil actions in U.S. courts for torts that were committed abroad.

A foreign state is not immune from the jurisdiction of a U.S. court when it has engaged in commercial activity within the United States.

Trade barriers are

An export tax imposed by Congress would be unconstitutional.

To prevent the sale of imported goods at less than fair value, an extra tariff-known as an antidumping duty-may be assessed on the imports.

A U.S. employer operating in a foreign country must abide by U.S. discrimination laws even if doing so violates the laws of that foreign country.

When a foreign country represents a substantial market for a U.S. manufacturer, the firm may enter into an agreement for the distribution of its products in that market by a foreign distributor.

Under the principle of comity, a domestic court will not examine the validity of any act committed by a foreign government within the court's jurisdiction.