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business
business ethics

Questions and Answers of Business Ethics

In what respects is foreign direct investment riskier than the sale of goods (exporting)? What are the different means of minimizing those risks?
Why might a company consider investing abroad?
You own publishing rights to a catalog of popular“do-it-yourself” home and electronic repair manuals. Distributors located in Germany, Italy, and India have approached you. What are your concerns
Review the web site of the U.S. Copyright Office to determine the requirements for registering a copyright license: http://www.lcweb.loc.gov.
Review the web site of The Cyberspace Law Institute for information on how the Internet interrelates with intellectual property law: http://www.cli.org.
License Writing and Review Problem: You represent an American manufacturing company whose products are based upon an assortment of patents, copyrights, trademarks, trade secrets, and know-how. The
Your company, a technology company based in the United States, holds a number of patents on Internet-related business applications. It is negotiating a licensing agreement with a major French
The premier German manufacturer of compact discs decides to export its discs to markets in Eastern Europe. Because of the economic realities of these emerging-economy countries, the manufacturer is
Your company produces a quality component product that is used in the manufacture of highscale stereo equipment. The component is manufactured through the use of special software developed by your
“Green River” is the trademark under which Sethness-Greenleaf, Inc., sold to bottlers a soft drink according to a formula that was Sethness-Greenleaf’s trade secret. Sethness-Greenleaf sold the
McCoy hired Mitsuboshi to make and supply shrimp knives covered by McCoy’s patent and trademarks. When Mitsuboshi produced the knives, McCoy refused to pay for them. Mitsuboshi resold the knives to
Review the web sites of the U.S. Patent and Trademark Office (www.uspto.gov), European Patent Office (www.epo.org), and Japanese Patent Office (www.jpo.go.jp). Also through these web sites, research
On May 5, 2000, a Dispute Settlement Panel of the World Trade Organization issued its report in the U.S.–Canada dispute over Canada’s term of patent protection. The Panel essentially agreed with
Review and compare the texts of the Uniform Trade Secrets Act (www.uniformlaws.org/shared/docs/trade%20secrets/utsa_final_85.pdf)and the Economic Espionage Act of 1996 (www.tscm.com). Scroll down to
Review the 2015 Special 301 Report of the U.S.Trade Representative at www.ustr.gov. What countries are on the Representative’s watch lists?Why are these countries on the lists? Be sure to scroll
Research the activities of the World International Property Organization by reviewing its web site at www.wipo.org.
Search the U.S. Copyright Office web site and report the requirements for filing a copyright registration: www.loc.gov/copyright.
L’Oreal applied for a patent on a sun protection factor (SPF) product in Luxembourg on April 13, 1987. It applied in the U.S. on April 12, 1988.Estee Lauder applied for a patent in the U.S. on the
Justice Yates stated more than 200 years ago that:“Ideas are free. But while the author confines them to his study, they are like birds in a cage, which none but he can have a right to let fly:
Conflicts of law rules play an important role in the application of national intellectual property laws.Courts determine which national lawis to be applied in the case by applying conflicts of law
What are the basic differences between the U.S.patent system and the patent systems found in other countries?
What can a U.S. licensor of intellectual property rights do to prevent a gray market problem?
Match the left column with the right column (see answers on the next page):5 Match the contract clause on the left with the definition on the right (see answers on the next page): A Apparent
Explain and give an example of the difference between a formalistic and a contextual interpretation of a contract term.
What are evergreen laws, who do they protect, and what type of protections do they provide?
What are the different characteristics of a foreign representative, consultant, commercial agent, and a distributor? What is the importance of independent contractor status in all these relationships
Research some of the following industry organization web sites for information on exporting services in those specific sectors. Management and Public Relations: Public Relations Society of America
The most recognized authority on international labor standards is the International Labour Organization (ILO). Review the ILO web site at http://www.ilo.org and become familiar with its standards and
Subcontractors. The Company may from time to time request that the Consultant arrange for the services of third parties. The Company will pay all costs to the Consultant but in no event shall the
Confidential Information. The Consultant agrees that any information received from the Company which concerns the personal, financial, or other affairs of the Company will be treated in full
Independent Contractor. The Company and Consultant agree that the Consultant is being hired as an independent contractor.Accordingly, the Consultant shall be responsible for payment of all taxes
Compensation. The Consultant will be paid at the rate of $125 per hour of work performed.However, the Consultant will be paid a minimum of $15,000 per month regardless of the time actually spent. The
Place of Services. The Consultant will perform services at a location ofConsultant’s discretion.
Time Devoted by Consultant. It is anticipated that the Consultant will spend approximately 35 hours per week in fulfilling his obligations under this agreement. The amount of time may vary from week
Term. The agreement shall begin on June 1, 2001, and terminate on May 30, 2004. Either party may cancel this agreement on thirty-day notice to the other party in writing, by certified mail or
Services. The Company employs the Consultant to perform certain consulting services. The Consultant will consult with the officers and employees of the Company concerning matters relating to the
The U.S. Eximbank is America’s largest export financing agency. Explore www.exim.gov to see how its programs benefit U.S. exporters.1 Review the following consulting agreement. What are the
Take a self-guided tour from a Canadian perspective of an international trade transaction at www.royalbank.com/trade.
Research the availability and requirements of the Small Business Administration’s Trade Finance Program.
Test your knowledge of trade finance terminology.Match the term with its definition (see answers on the next page).
A letter of credit is issued with the following terms and conditions: “(1) The beneficiary partymust present a full set of clean-on-board bills of lading evidencing shipment from Port A to Port B
The terms and conditions of a letter of credit state that the beneficiary party (seller) is to provide a certificate of origin listing the goods as originating from “NAFTA Countries.” The
A company engaging in the manufacture and sale of telecommunications equipment entered into an agreement with the “Imperial Government of Carpathia” to install and maintain certain
Should the parties to a documentary credit include a dispute resolution clause in their letters of credit or allow disputes to be resolved through litigation?Are there any alternatives to arbitration
One topic of great interest at a recent global banking conference was dealing with letters of credit in China. As those who use Chinese letters of credit know, the Chinese will reject a letter of
Check the services and types of e-documents provided through the Bolero Project at www.bolero.net.
Select a country and research the documentary requirements for the importation of goods into that country. Such information can be obtained from the following sources: (1) U.S. Department of
You are unsure of what trade term to use in negotiating an export contract. You are willing to be responsible for the loading and shipping costs to the port of destination, along with the cost of
Write out the words for the INCOTERMS acronyms:EXW ______________________________ FCA ______________________________ FOB ______________________________ FAS ______________________________ CIF
What right of inspection does a buyer have under the CIF INCOTERMS?
What INCOTERMS are only used for ocean transport?
What are the main differences between the FOB, CIF, and DDP INCOTERMS?
What is the legal status of INCOTERMS? Is it a law?
A foreign buyer negotiates with a foreign exporter for goods to be shipped out of a foreign port. To protect itself from fraud in the transaction, the buyer requires that the exporter provide an
An export contract required that the seller provide:“a full set of three original clean on board bills of lading.” Instead, the seller presented a full set of three clean on-board bills of lading
You are a manufacturer of precision industrial tools and parts based in Ithaca, New York. You have been contacted by a manufacturer in Budapest, Hungary, to begin supplying it with an assortment of
You are the purchasing agent for a U.S. luggage manufacturer. You are asked to outsource some of the components, including steel strips used in the fabrication of the structural frames of the larger
A buyer and seller entered into a contract for the sale of widgets, “CIF Omaha.” A further provision stated that delivery was to be at a “factory in Omaha, Tulsa, or Kansas City, to be
Your company has just entered into an export contract with a company in Chile. It is your job to arrange transport from the Port of Miami to Santiago, Chile. Check the shipping schedules to determine
Research the status of the BOLERO Project in the development of electronic documentation relating to the shipment of goods at www.bolero.net.
Review the web site of the International Maritime Bureau: www.iccwbo.org/ccs/menu_imb_bureau.asp. What types of services does this organization provide to international shippers?
The plaintiffs are Dutch importers of commodities that included industrial leather gloves. Four shipments of gloves were made in 1982 and 1983. The insurance contract contained the following
Plaintiff Tseng boarded an international flight from New York to Tel Aviv. Before being allowed to board, she was subjected to an intrusive security search. Tseng sued the airline in state court in
During a time of hostilities, a shipowner hires a tug to tow the ship to lessen the danger from enemy submarines. Can the shipowner make a general average claim by arguing that the towing costs are
Goods are jettisoned from a ship as a general average act. You file a claim against your marine insurance policy and receive full payment. Does the marine insurance company have a claim for general
A shipper obtains a cargo insurance policy on 400 sealed crates of “Grade A” industrial grinding wheels. In fact, the grinding wheels were contained in 400 burlap sacks and were of secondhand
An insured takes out a marine insurance policy on$50,000 worth of goods but fails to disclose his previous claims history. In fact, the insured had filed claims for loss on eight previous policies
A shipper obtains a marine (cargo) insurance policy for $25,000 on goods that had a real or market value of $8,000. If the goods are lost at sea, is the insurance company liable for $25,000, $8,000,
What are the functions of freight forwarders and what is the relationship between freight forwarders and the exporters?
What is the purpose of international carriage conventions?Why are they needed? Why are they important? In what ways do they favor the shipping companies or common carriers? What benefits do the
Select a country and research its sales law using the Cornell Law School Legal Information Institute at http://www.law.cornell.edu. Click on “Get the Law” at the top; then click “Law by
Review how Islamic Law deals with commercial transactions. See http://www.oxfordislamicstudies.com/article/opr/t236/e0156 and http://www.islamic-finance.com/item13_f.htm.
The European Union has a directive pertaining to warranties in consumer transactions. Compare the selected provisions of Directive 99/44/EC with the warranty provisions found in the UCC and CISG.Note
A business manager corresponds with numerous contacts in the international business world. She sends letters and faxes to agents, customers, suppliers, distributors, lenders, and many others. Most
a As a seller and exporter of goods you are negotiating a long-term (three-year) installment contract. Because of the length of the contract, an open price term needs to be negotiated.Write a clause
Section 2-205 of the UCC provides an exception to the rule that an offeror is the “master of the offer” or that he has a right to revoke the offer at any time. It provides that “an offer given
How do courts determine which national laws apply in a given case?
In many transactions involving technology transfer, the contract provides for the sale of both goods and services. Does the CISG apply to such contracts?
ComparetheUCC’s treatment of anticipatory repudiation and adequate assurance in 2-609 and 2-610 with the CISG’s treatment in Articles 71–73. Can you find any significant differences?
Review the subjects covered in Principles of European Contract Law Part III, which were added in 2002 (Chapters 10–17) at www.jus.uio.no/lm/eu.contract.principles.parts.1.to.3.2002.
Readthe“overview” of the Council of Europe, along with the different subject areas within the organization, and associated links: www.coe.int/en/web/portal/home.
Review the European Commission’s home page for Consumer Affairs at http://europa.eu/pol/cons/index_en.htm. What types of consumer protection initiatives has the EU undertaken? What areas in the
Review Schedule 2 (“Consumer contract terms which may be regarded as unfair”) of the Consumer Rights Act of 2015 to see which terms are considered unfair and enforceable when placed in consumer
ReviewtheBojangles, Plas, Grifoni, and SA Pasquasy cases on preliminary agreements and culpa in contrahendo and answer the following questions. What could the party being sued have done differently
Two firms work together to prepare a complex bid for a buyer. One firm (Company A) dropped the other (Company B) before getting the bid.Afterworking for some time on specifications, negotiating with
Justice Cardozo noted a profound change in the law of contracts and the reduced role of formality as a requirement for contractual liability in the following quote: “The law has outgrown its
Make a list of countries that you are unsure have what type of legal system and go to: “Listing of Legal Systems” in the CIA World Factbook at
Review the following sources to gain a better understanding of Roman law: https://www.law.berkeley.edu/library/robbins/RomanLegalTradition.html(Roman Legal Tradition and the Compilation of
Connect the items on the left with the terms thatare most clearly related on the right (answers over the page): i Legal Tradition ii Legal Family iii Legal System iv Corpus Juris Civilis v Writs vi
How is the common law different from the civil law? Statutes have proliferated in both common and civil law countries, so how can it be said that the common law is judge-made law? What is the
What roles does Confucianism play in modernday China? How does its influence affect the negotiation and drafting of contracts?
How do a country’s cultural values and practices affect its legal tradition? How does a country’s culture impact the role of law in society? How does culture impact on private parties’ use of
What are the major legal traditions in the world, and what are their distinctive characteristics?
Go to the Transparency International web site at www.transparency.org. Research the rates of corruption and the criteria used for the rankings and compare the BRIC countries (Brazil, Russia, India,
Use the web site http://www.lawinfochina.com to research one of China’s provinces for the purpose of doing business. Select a rural province and compare its environment and laws for doing business
Does China have adequate laws for protecting intellectual property rights? Why is the counterfeiting and piracy of goods protected by patent and trademark law so common in China? What can your
Ethics Question: How should a company respond to China’s discrimination of certain minority groups and human rights violations? How does your company deal with the prevalence of corruption in
What issues does the size of the population of China and the low per capita income present to a company wanting to establish a presence in China? How does this affect the types of products and the
What are the benefits of establishing a business in Hong Kong and not in Mainland China? What is the strategic value of placing your business in Hong Kong?
What are the differences between the legal systems of Mainland China and Hong Kong? How is the role of law in society? What is the differences between the “rule of law” in Hong Kong as compared

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