(Test Bank) Business Its Legal Ethical And Global Environment

Jennings, 10

Business

Test Bank

10th Edition

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Test Bank for Business Its Legal Ethical And Global Environment, The downloadable file consists of 682 pages, and the total size of the file is 8.47 MB. Purchase now only for highly discounted price.

Author(s): Jennings

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1. The U.S. system of law is based primarily on code law. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Sources of International Law KEYWORDS: Bloom's: Knowledge 2. GATT is the result of a multilateral treaty. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Sources of International Law KEYWORDS: Bloom's: Knowledge 3. Sovereign immunity protects individual nation's operations from outside interference. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Principles of International Law KEYWORDS: Bloom's: Knowledge 4. Under the doctrine of sovereign immunity, commercial transactions cannot be regulated. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Principles of International Law KEYWORDS: Bloom's: Knowledge 5. Expropriation is prohibited in countries that are members of the United Nations. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Principles of International Law KEYWORDS: Bloom's: Knowledge 6. Nationalization is a process of eminent domain. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Principles of International Law KEYWORDS: Bloom's: Knowledge 7. U.S. courts have no jurisdiction over foreign businesses with operations in the United States. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Principles of International Law KEYWORDS: Bloom's: Knowledge 8. U.S. securities laws would not apply to countries selling securities in the United States under the doctrine of sovereign immunity. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Principles of International Law KEYWORDS: Bloom's: Application 9. The act of state doctrine precludes outside interference in expropriation. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Principles of International Law KEYWORDS: Bloom's: Application 10. The Overseas Private Investment Corporation is an insurer against expropriation. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Principles of International Law KEYWORDS: Bloom's: Knowledge 11. Repatriation is the limitation on removal of profits earned in a country from that country. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Principles of International Law KEYWORDS: Bloom's: Knowledge 12. The doctrine of forum non conveniens is used to dismiss cases brought in courts in the wrong nation. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Principles of International Law KEYWORDS: Bloom's: Application 13. The U.S. antitrust laws apply only to U.S. firms. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Protections in International Competition KEYWORDS: Bloom's: Knowledge 14. The Export Trading Company Act allows for international joint ventures that would otherwise be anticompetitive. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Protections in International Competition KEYWORDS: Bloom's: Knowledge 15. Some of the most active pirates are from Cuba. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Sources of International Law KEYWORDS: Bloom's: Knowledge 16. Under the doctrine of sovereign immunity, a country cannot be forced to answer civil or criminal charges in a U.S. court. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Principles of International Law KEYWORDS: Bloom's: Knowledge 17. A foreign country engaging in commercial transactions in the United States is not protected by the doctrine of sovereign immunity for those transactions. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Principles of International Law KEYWORDS: Bloom's: Knowledge 18. Foreign businesses engaging in commercial activity in the United States are not subject to U.S. antitrust laws. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Principles of International Law KEYWORDS: Bloom's: Knowledge 19. Tariffs can be revenue -raising and protectionist for domestic goods. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Protections in International Competition KEYWORDS: Bloom's: Knowledge 20. GATT is a 150-member free trade agreement. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Sources of International Law KEYWORDS: Bloom's: Knowledge 21. The Kyoto Treaty has now been ratified by all signatory countries. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Sources of International Law KEYWORDS: Bloom's: Knowledge 22. The Justice Department does not offer any assistance to companies with questions about Foreign Corrupt Practices Act requirements. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Trust, Corruption, Trade, and Economics KEYWORDS: Bloom's: Knowledge 23. The Act of State Doctrine applies to antitrust issues for member countries of the United Nations. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Principles of International Law KEYWORDS: Bloom's: Knowledge 24. MFN stands for most favored nation status under GATT. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Sources of International Law KEYWORDS: Bloom's: Knowledge 25. Sovereign immunity provides that our court system cannot be used to right injustices in other countries. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Principles of International Law KEYWORDS: Bloom's: Knowledge 26. Expropriation or nationalization is protected under the act of state doctrine. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Principles of International Law KEYWORDS: Bloom's: Knowledge 27. The Hickenlooper Amendment is the Foreign Corrupt Practices Act. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Principles of International Law KEYWORDS: Bloom's: Synthesis 28. The Export Trading Company Act provides antitrust exemptions for international joint ventures. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Protections in International Competition KEYWORDS: Bloom's: Knowledge 29. The U.S. courts can be used by citizens of foreign countries to recover for injuries occurring in their countries at the hands of U.S. companies. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Principles of International Law KEYWORDS: Bloom's: Knowledge 30. The Foreign Corrupt Practices Act applies to all companies doing business abroad. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Trust, Corruption, Trade, and Economics KEYWORDS: Bloom's: Application 31. The only types of transactions covered under the Foreign Corrupt Practices Act are those that involve contracts with foreign governments. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Trust, Corruption, Trade, and Economics KEYWORDS: Bloom's: Application 32. The Foreign Corrupt Practices Act is not applicable in NAFTA or GATT contracts. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Trust, Corruption, Trade, and Economics KEYWORDS: Bloom's: Application 33. NGO officials are included as government officials for purposes of the Foreign Corrupt Practices Act . a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Trust, Corruption, Trade, and Economics KEYWORDS: Bloom's: Application 34. The LESCANT factors are a means of understanding various issues in cultures prior to beginning contract negotiations. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Sources of International Law KEYWORDS: Bloom's: Knowledge 35. The Export Trading Company Act of 1982 provides an exception to U.S. antitrust laws in international markets. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Protections in International Competition KEYWORDS: Bloom's: Synthesis 36. The OECD is resistant to the U.S. position against bribery. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Trust, Corruption, Trade, and Economics KEYWORDS: Bloom's: Knowledge 37. OECD has relationships with 70 countries and NGOs. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Trust, Corruption, Trade, and Economics KEYWORDS: Bloom's: Knowledge 38. The WTO is the body charged with OECD enforcement. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Sources of International Law KEYWORDS: Bloom's: Synthesis 39. NAFTA applies only to goods that originate in the U.S., Mexico, and Canada. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Sources of International Law KEYWORDS: Bloom's: Knowledge 40. The effect of the FCPA has been to decrease U.S. companies’ competitiveness. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Trust, Corruption, Trade, and Economics KEYWORDS: Bloom's: Evaluation 41. EU and countries’ antitrust laws do not apply to U.S. companies doing business in the EU. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Protections in International Competition KEYWORDS: Bloom's: Application 42. There was some resistance to granting China MFN status. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Sources of International Law KEYWORDS: Bloom's: Knowledge 43. GATT is an example of a bilateral trade agreement. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Sources of International Law KEYWORDS: Bloom's: Knowledge 44. NAFTA is an example of a bilateral trade agreement. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Sources of International Law KEYWORDS: Bloom's: Knowledge 45. The U.S. sanctions against trade with Iran are an example of a unilateral trade sanction. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Sources of International Law KEYWORDS: Bloom's: Knowledge 46. Which of the following is not a source of international law? a. custom b. private law c. treaties d. All of the above are sources of international law. ANSWER: d POINTS: 1 DIFFICULTY: Knowledge NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Sources of International Law KEYWORDS: Bloom's: Knowledge 47. Which of the following countries does not base their legal systems on code law? a. Great Britain b. Italy c. France d. Spain ANSWER: a POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Sources of International Law KEYWORDS: Bloom's: Synthesis 48. The act of state doctrine: a. is not recognized by the United States. b. prohibits one government from interfering in the acts of state of another government. c. is prohibited by members of the United Nations. d. all of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Principles of International Law KEYWORDS: Bloom's: Comprehension 49. A U.S. luxury liner was attacked by an Iraqi ship in the Persian Gulf. Many passengers were injured and the ship was damaged. The owner of the ship brought suit in federal district court against the government of Iraq. The suit will: a. be heard because the attack was a violation of international law. b. be heard because the attack harmed U.S. citizens. c. not be heard under the doctrine of sovereign immunity. d. be heard but only in the International Court of Justice. ANSWER: c POINTS: 1 DIFFICULTY: Challenging NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - OH - AICPA: BB-Critical Thinking TOPICS: Principles of International Law KEYWORDS: Bloom's: Analysis 50. Which of the following is not a LESCANT factor? a. language b. law c. social organization d. contexting ANSWER: b POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Sources of International Law KEYWORDS: Bloom's: Knowledge 51. The contact lens company, Here's Clear Eye, sold thousands of pairs of contact lenses in Kenya. The lenses were defective and resulted in severe eye infections, and in 156 cases, blindness. The purchasers of the lenses who bring suit in Kenya will be entitled to recover their purchase price, attorney fees and medical bills. Kenya does not permit recovery for pain and suffering nor for permanent injury. Several of the purchasers who are blind have brought suit in South Carolina, the home of Here's Clear Eye. South Carolina permits recovery for permanent injury as well as punitive damages. The average recovery in Kenya for the purchasers is $600. A lawyer for the purchasers from Columbia, South Carolina estimates the average verdict will be $600,000. Which of the following statements is true? a. The Kenya purchasers may use the South Carolina courts because their remedies in Kenya are inadequate. b. The South Carolina cases will be dismissed on the grounds of forum non conveniens . c. The Kenya purchasers can recover only punitive damages in South Carolina. d. The Kenya purchasers can recover only for permanent injuries in South Carolina. ANSWER: b POINTS: 1 DIFFICULTY: Challenging NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - OH - AICPA: BB-Critical Thinking TOPICS: Principles of International Law KEYWORDS: Bloom's: Analysis 52. Nike and Reebok, the number -one and number -two athletic shoe companies in the United States, could combine to do business: a. but they would violate U.S. antitrust laws. b. outside the U.S. under the Export Trading Company Act. c. but would risk charges of monopolization. d. none of the above ANSWER: b POINTS: 1 DIFFICULTY: Challenging NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Protections in International Competition KEYWORDS: Bloom's: Synthesis 53. The government of Argentina has taken over all the country's banks. No compensation has been paid. Some U.S. citizens and businesses had accounts in the banks. Absent treaty provisions the takeover: a. can be set aside by a U.S. federal court because no compensation was paid. b. can be partially set aside by a U.S. federal court on the accounts of U.S. citizens and businesses. c. can be reviewed by the U.S. State Department. d. is immune from review under the act of state doctrine. ANSWER: d POINTS: 1 DIFFICULTY: Challenging NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - OH - AICPA: BB-Critical Thinking TOPICS: Principles of International Law KEYWORDS: Bloom's: Synthesis 54. The European Union: a. is a trademark registration organization. b. eliminated tariff protections for its members in 1992. c. is an international court of justice. d. none of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Sources of International Law KEYWORDS: Bloom's: Synthesis 55. Which of the following is a multilateral treaty? a. a treaty between the United States and Canada on acid rain b. a treaty between Mexico and the United States on border drug traffic c. a treaty between England, Japan, and the United States on trade with China d. none of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: Sources of International Law KEYWORDS: Bloom's: Application | Bloom's: Synthesis 56. The _____ Doctrine confirms the independence of sovereign nations and their courts. a. International Sovereignty b. Act-of-Sovereign c. Act-of-State