Question 1

Online retailers that have a physical presence within a state must collect state taxes on any Web sales made to residents of that state. Sell2U.com, Inc., an online retailer based in California, pays Tracker Web Services, which is located within New York, to direct traffic to Sell2U.com's site. If Sell2U.com must collect and remit taxes on its sales to New York residents, it is most likely because​

Accepted Answer

A)   ​Sell2U.com's deal with Tracker falls within New York's definition of physical presence.
B)   ​Congress has explicitly chosen to tax Internet sales.
C)   ​the United States Supreme Court has ruled that a state can compel an out-of-state business to collect and remit state taxes.
D)   ​New York requires its residents to self-report their purchases and pay use taxes to the state.E) B) and D)
F) None of the above

Question 2

The label on AmBeer Inc.'s beer reads, "U.S. quality" and, beneath that phrase in small print, "Made with Imported Hops." Bruce and other consumers file a class action against the brewer in California, which prohibits the use of an unqualified U.S.-origin claim. The plaintiffs' best ground for a possible recovery is most likely​

Accepted Answer

A)   ​misleading advertising.
B)   ​unethical labeling practices.
C)   ​inconsistent puffery.
D)   ​inferior taste.E) All of the above
F) None of the above

Question 3

The label on Cameron Ltd.'s beer reads, "British quality" and, beneath that phrase in small print, "Product of the U.S.A." Dave and other consumers file a class action against the brewer over the fact that its beer is not brewed in Great Britain. The plaintiffs' best ground for a possible recovery is most likely​

Accepted Answer

A)   ​misleading advertising.
B)   ​unethical labeling practices.
C)   ​inconsistent puffery.
D)   ​inferior taste.E) None of the above
F) A) and B)

Question 4

Web Resource Inc. and World Marketing Ltd., businesses located in different countries, agree to a contract. Like different individuals, Web Resource and World Marketing have different perceptions of what the agreement between them is and what it means to fulfill it. This is because​

Accepted Answer

A)   ​in every country arbitration is the preferred method of dispute resolution.
B)   ​in every country it is acceptable to file an action in a court to resolve a dispute.
C)   ​a business contract is only the expression of the framework of a deal.
D)   ​Web Resource and World Marketing are influenced by different cultures.E) B) and D)
F) A) and B) D

Question 5

Home Grown Inc. is a firm based in the United States that does business overseas. When entering into a business contract, when deciding which terms to include, and when choosing a method to resolve a dispute, Home Grown should​

Accepted Answer

A)   ​rely solely on legal principles rather than the business relationship.
B)   ​assume that a party in another country has the same contractual expectations as a party in the United States.
C)   ​be alert to cultural influences.
D)   ​stay inflexible in the face of others' social and cultural practices.E) None of the above
F) A) and C) C

Question 6

Fleet Feet, an online travel company, buys blocks of rooms from Grande Hotel, a hotel in Harbor City, at a wholesale rate. Fleet Feet resells the rooms to consumers at a retail rate. One recent effort by cities to collect taxes from e-commerce has focused on​

Accepted Answer

A)   ​hotels that sell blocks of rooms at wholesale rates.
B)   ​non-resident consumers who reserve rooms in in-state hotels.
C)   ​online travel companies.
D)   ​the dire financial straits of the cities during the latest recession.E) B) and C)
F) None of the above C

Question 7

National Sales Company and Omni Supply Corporation are businesses located in different countries. Representatives of National Sales and Omni Supply transact a deal over their cellphones. Under the United Nations Convention on the Use of Electronic Communications in International Trade (ECC) , which National Sales's country has adopted, this deal is​

Accepted Answer

A)   ​as valid and enforceable as a contract on paper.
B)   ​invalid because Omni Supply's country has not adopted the ECC.
C)   ​invalid because it is not a contract on paper.
D)   ​invalid because the businesses are located in different countries.E) B) and C)
F) B) and D)

Question 8

Global Enterprise Inc. does business throughout the world. As an international corporation, Global can be subject to conventions issued by the United Nations Commission on International Trade Law. Conventions are​

Accepted Answer

A)   ​designed to establish binding legal obligations.
B)   ​recommendations for individual nations to adopt as part of their national law.
C)   ​non-binding guidelines of suggested commercial norms.
D)   ​none of the choices.E) A) and B)
F) None of the above

Exam 55: Domestic and International Sales and Lease Contracts

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Web Resource Inc. and World Marketing Ltd., businesses located in different countries, agree to a contract. Like different individuals, Web Resource and World Marketing have different perceptions of what the agreement between them is and what it means to fulfill it. This is because

Correct Answer
verified
D

Home Grown Inc. is a firm based in the United States that does business overseas. When entering into a business contract, when deciding which terms to include, and when choosing a method to resolve a dispute, Home Grown should

Correct Answer
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C

Fleet Feet, an online travel company, buys blocks of rooms from Grande Hotel, a hotel in Harbor City, at a wholesale rate. Fleet Feet resells the rooms to consumers at a retail rate. One recent effort by cities to collect taxes from e-commerce has focused on

Correct Answer
verified
C

Correct Answer
verified

Global Enterprise Inc. does business throughout the world. As an international corporation, Global can be subject to conventions issued by the United Nations Commission on International Trade Law. Conventions are

Correct Answer
verified

Exam 55: Domestic and International Sales and Lease Contracts

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Web Resource Inc. and World Marketing Ltd., businesses located in different countries, agree to a contract. Like different individuals, Web Resource and World Marketing have different perceptions of what the agreement between them is and what it means to fulfill it. This is because​

Correct AnswerverifiedD

Home Grown Inc. is a firm based in the United States that does business overseas. When entering into a business contract, when deciding which terms to include, and when choosing a method to resolve a dispute, Home Grown should​

Correct AnswerverifiedC

Fleet Feet, an online travel company, buys blocks of rooms from Grande Hotel, a hotel in Harbor City, at a wholesale rate. Fleet Feet resells the rooms to consumers at a retail rate. One recent effort by cities to collect taxes from e-commerce has focused on​

Correct AnswerverifiedC

Correct AnswerverifiedShow Answer

Global Enterprise Inc. does business throughout the world. As an international corporation, Global can be subject to conventions issued by the United Nations Commission on International Trade Law. Conventions are​

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Web Resource Inc. and World Marketing Ltd., businesses located in different countries, agree to a contract. Like different individuals, Web Resource and World Marketing have different perceptions of what the agreement between them is and what it means to fulfill it. This is because

Correct Answer
verified
D

Home Grown Inc. is a firm based in the United States that does business overseas. When entering into a business contract, when deciding which terms to include, and when choosing a method to resolve a dispute, Home Grown should

Correct Answer
verified
C

Fleet Feet, an online travel company, buys blocks of rooms from Grande Hotel, a hotel in Harbor City, at a wholesale rate. Fleet Feet resells the rooms to consumers at a retail rate. One recent effort by cities to collect taxes from e-commerce has focused on

Correct Answer
verified
C

Correct Answer
verified

Global Enterprise Inc. does business throughout the world. As an international corporation, Global can be subject to conventions issued by the United Nations Commission on International Trade Law. Conventions are

Correct Answer
verified