Chapter 13 Quiz Business Law 1 Companies in the United States are required to follow the environmental rules and regulations of their home country when they shift their businesses to other countries a True b False They do not have to follow the environmental rules of their home countries 2 The factor that does not influence the consumer s behavior negatively outsourcing is a Competitive Pricing it is a positive outcome because it brings down 3 It is legal for a U S company to contract with an overseas manufacturer without insisting on minimum wages as per U S laws the cost of ownership Improper disposal of e waste b Loss of employment c d Environmental Pollution e Violation of human rights 4 In the United States statues are set by the a True b False a Executive branch b Judiciary branch c Legislative Branch d President e Supreme Court 5 A political entity that governs its own territorial affairs without being subjected to an outside authority is a federal state a True b False A sovereign state governs its own affairs and is not bound by outside authority 6 In the United States laws are handed down by the legislative branch in the form of common law a True b False In the U S laws are handed down by the legislative branch in the form of statutory laws 7 The country of Renada has passed a law stating that every employed person should allocate a fixd percentage of their annual income to health insurance This is an example of a n 8 A treaty signed between Germany and the United States concerning trade a Domestic law b State law c International law d Supranational law e Foreign trade law regulations is an example of a Domestic law b International law c Federal law d State law e Statutory law International law a b Domestic Law c Civil Law d Common Law e Bylaw Treaties have a horizontal structure This is because the parties to international treaties are sovereign states Since each party is a sovereign state no one party is legally dominant or authoritative over the other 9 Law between sovereign states is known as 10 Super Structures Inc a U S company had outsourced a part of its business to Reldex Inc a company in the country of Alta ON receiving the finished products the manager of Super Structures Inc found that Reldex Inc had violated some of its agreements Which neutral tribunal can both parties approach for arbitration a The U S Sentencing Commission b The U S Patent and Trademark Office c The International Civil Service Commission d The U S Department of Commerce Bureau of Industry and Security e The International Court of Justice 11 It is easier to enforce violations in laws created in horizontal power structures than in vertical power structures a True b False An obvious challenge to laws created in horizontal power structures that lie outside of any legitimate lawmaking authority above the parties is that enforcement of violations can be difficult In domestic laws it is easier for enforcement of violations as there is a legitimate law created authority at the top and people to be governed at the bottom 12 The Senate has little or no role in ratifying treaties a True b False the Senate must ratify a treaty before the treaty binds the United States and before its provisions become law for the people within the United States 13 The provides for the enforcement of arbitral awards among member states a Geneva Convention b Convention on the Recognition and Enforcement of Foreign Arbitral Awards c United Nations Economic and Social Council d United Nations Commission on International Trade Law e Choice of law clause 14 A choice of law clause clearly provides guidelines for settlement of disputes between companies operating from different countries a True b False A choice of law clause is a contractual provision that specifies which law and jurisdiction will apply to disputes arising under the contract 15 A company based in Chicago has signed a business deal with a company based in Melbourne Australia Which of the following clauses can be used to specify the law that would apply in case of disputes between these two parties a Arbitration Clause b Liquidated Damages Clause c Merger Clause d Choice of Law Clause e Statute of Limitations Clause 16 The North American Free Trade Agreement NAFTA aims to reduce the costs associated with importing and increase the costs associated with exporting a True b False trade agreements like the North American Free Trade Agreement aim to reduce the costs associated with importing and exporting 17 The purpose of the General Agreement on Trade and Tariffs GATT is to Increase the costs associated with exporting for higher profits a b Reduce the number of tariff free trading zones c Provide license for new businesses d Reduce trade barriers e Fund the growth of the public sector industries The GATT is an international treaty that worked to reduce trade barriers Multinational agreements remove trade barriers to create more duty free and tariff free trading zones and reduce the cost associated with importing and exporting 18 The department supporting the United States exports and competiveness abroad is the Administration a U S Department of Commerce s International Trade b Export Administration c U S Department of Commerce Bureau of Industry and Security d U S Department of the Treasury Office of Foreign Assets Control e U S Department of State International Traffic in Arms Regulation 19 The U S Department of Homeland Security Customs and Border Protection Agency CBA has a primary role in Import control administration and regulation a b Settling trade disputes c The enforcement of arbitral awards among the parties involved d Controlling the quality of exports e Protecting the rights of U S citizens employed in foreign countries The U S Department of Homeland Security Customs and Border Protection Agency CBA have a primary role in import control administration and regulation For example it inspects imports to classify them to establish their tariff schedule 20 Controls that limit or restrict specific products from entering a country are known as export controls a True b False Import controls regulate the limits and restrictions of products entering a country 21 The Customs Modernization and Informed Compliance Act places the responsibility for compliance with the responsibility for compliance with import laws on the importer a True b False known as a quota 22 A favorable tariff on certain quantities of particular types of imports is a True b False a Tariff