Multiple-Choice Questions
1. For which of the following activities can a foreign sovereign be sued?
(a) Operating a factory dangerously
(b) Issuing a law that discriminates against a certain group
(c) Suspending the civil rights of its people
(d) None of the above
2. Outdoor Technologies (an Australian company) obtained a judgment for $500,000 against Silver Star (a Chinese company) in a court in Australia. Silver Star owned property in Iowa so Outdoor filed suit in Iowa to collect the judgment. Which of the following statements is true?
(a) Outdoor cannot collect in the United States a judgment that was issued by an Australian court.
(b) Outdoor cannot collect in the United States because Silver is not an American company.
(c) Outdoor can collect in the United States if the Australian court was fair and proper.
(d) Outdoor can collect in the United States, because both the United States and Australia have common law systems.
3. The President negotiates a defense agreement with a foreign government. To take effect, the agreement must be ratified by which of the following?
(a) Two-thirds of the House of Representatives
(b) Two-thirds of the Senate
(c) The Supreme Court
(d) A and B
(e) A, B, and C
4. Lynn is an author living in Nevada. She contracted with a company in China, which promised to print her custom children's books. After receiving Lynn's payment, the company disappeared without performing. Lynn wants to sue for fraud, but the contract does not say anything about which country's law will be used to resolve disputes. Both China and the United States are signatories of the CISG. Will the CISG apply in this case?
(a) Yes, because both countries are signatories.
(b) Yes, because the parties did not opt out of the CISG.
(c) No, because the contract does not involve goods.
(d) No, because the CISG does not establish rules for fraud.
5. Austria, Indonesia, and Colombia are all members of the WTO. If Austria imposes a tariff on imports of coffee beans from Colombia, but not from Indonesia, is it in violation of WTO principles?
(a) Yes, the WTO prohibits tariffs.
(b) Yes, the WTO prohibits excise taxes.
(c) Yes, Austria is violating the WTO's most favored nation rules.
(d) No, the WTO's most favored nation rules permit Austria to do this.