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When a foreign government acts as a "private party" in the market,its actions qualify as commercial activity for purposes of the Foreign Sovereign Immunities Act.

A) True
B) False

Correct Answer

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A company can export indirectly and thereby limit its involvement in an international market by making use of agency relationships.

A) True
B) False

Correct Answer

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The Outer Space Treaty provides that a nation retains jurisdiction over objects on its space registry that are launched into space.The treaty also prohibits interference with space activities.In effect,these provisions


A) ban the national appropriation of territory in space.
B) protect property rights with respect to private space activities.
C) assert sovereignty over celestial bodies.
D) declare exclusive international jurisdiction over space locations.

E) A) and C)
F) None of the above

Correct Answer

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Nations impose laws to restrict or facilitate international business because business activities can affect national interests.

A) True
B) False

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International law is formed as result of international customs,treaties,agreements,and organizations.

A) True
B) False

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By means of an arbitration clause,the parties to an international business contract agree in advance to resolve any dispute without involving a third party.

A) True
B) False

Correct Answer

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

A) True
B) False

Correct Answer

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Regional trade agreements and associations help to minimize trade barriers among nations.

A) True
B) False

Correct Answer

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An allegation that certain imported goods infringe on a U.S.firm's patents will be investigated by the Export-Import Bank of the United States.

A) True
B) False

Correct Answer

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As part of a deal for power-generating equipment,Solar Wind Company and Thermal Gen Ltd.enter into a written contract that includes a clause providing for the arbitration of any dispute in the United States.Under the New York Convention,if a dispute arises,a court will compel arbitration if both parties are


A) not U.S.citizens.
B) U.S.citizens.
C) citizens of non-signatory countries.
D) citizens of countries that are members of the World Trade Organization.

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

Correct Answer

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The Outer Space Treaty declares that internationally recognized political boundaries extend from Earth into the farthest reaches of space.

A) True
B) False

Correct Answer

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Under the Outer Space Treaty,a moon,a planet,an asteroid,or any other celestial body is subject to the appropriation of


A) the first nation to explore it.
B) the first nation to exploit it.
C) the first nation to claim title to it.
D) no single nation.

E) A) and D)
F) A) and B)

Correct Answer

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Global Project,a U.S.firm,owns property in Hong Kong.The government of China seizes the property.The firm claims that this is confiscation.The government claims that it is expropriation.The difference concerns


A) the location of the seizure and the nature of its government.
B) the purpose of the seizure and the payment of compensation.
C) the business of the firm and the citizenship of its owners.
D) none of the choices.

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

Correct Answer

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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.

A) True
B) False

Correct Answer

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Habitable Premises Corporation,a U.S.firm,owns property in India.The government of India seizes the property for a proper public purpose and pays the firm just compensation.This is


A) confiscation.
B) the act of state doctrine.
C) the doctrine of sovereign immunity.
D) expropriation.

E) A) and C)
F) None of the above

Correct Answer

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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.

A) True
B) False

Correct Answer

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Normal trade relations status granted to a member of the World Trade Organization means that the member will receive other members' most favorable treatment with regard to imports and exports.

A) True
B) False

Correct Answer

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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) True
B) False

Correct Answer

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Finance Corporation,a U.S.firm,files a suit against Ghana in a U.S.court.Under the Foreign Sovereign Immunities Act,Ghana is immune from the jurisdiction of the court if Ghana has


A) engaged in commercial activity within the United States.
B) engaged in commercial activity outside the United States that has a direct effect in the United States.
C) committed a tort in the United States.
D) none of the choices.

E) B) and C)
F) C) and D)

Correct Answer

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A foreign state is immune from the jurisdiction of a U.S.court when the state has engaged in commercial activity only outside the United States.

A) True
B) False

Correct Answer

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