_______________are separate contracts between one of the main contracting parties and a third party, and they are most often in the areas of financing or credit arrangements, transportation, and insurance. *

Sub supply agreements

Ancillary agreements

Ancillary Contracts

Sub contracts

The payment arrangement most often agreed upon by Canadian parties doing business in countries other than the United States is the letter of credit (L/C), or documentary credit. *

False

True

Trade in services is not as straightforward as trade in goods. For trade in goods the focus is often on delivery, and the use of Incoterms greatly reduces the number of issues to be negotiated by the parties. But this is not the case for trade in services. there is a negotiation template *

True

False

strict liability: from early tort law, the imposition of the burden of compensation on the person who had caused an injury, despite the absence of any blameworthy conduct on their part; also called liability without fault *

True

False

Elements of a Tort Action The general rule in common law tort law is that a plaintiff who wishes to recover in tort must prove three things which is not one of the those *

that the defendant's conduct caused the injury

that the defendant owed the plaintiff a duty of care

that the defendant met the duty

that the defendant breached that duty

Duty of Care is the degree of prudence and caution that a reasonable person would exercise in a given situation and will thus vary with the circumstances of each case. *

True

False

Any business negotiating an international contract for goods or services must bear in mind the implications of its plans from a competition or anti-trust law perspective. *

False

True

Intellectual property includes diverse subject matters like *

C) Copyright

Only Patents, Trademarks and Copyright

B) Trademarks

A, B, C, D and E

A) Patents

D) Industrial designs

Intellectual capital is a mix of *

Human capital (experience, skills, creativity)

Intellectual property rights

Intellectual assets

All of the options

Based on The international intellectual property framework Nations do not enter into contracts, they negotiate conventions, treaties, agreements *

True

False

WIPO treaties fall into *

Treaties that establish classification systems and procedures for improving them

All choices are correct

Treaties that establish international protection

Treaties that facilitate international protection

Patents : rights granted for specific inventions *

True

False

WIPO (World Intellectual Property Organization) is a specialized agency of the United Nations with a mandate to maintain and respect for intellectual property throughout the world *

True

False

Trademarks : they protect elements used to distinguish the products or services and include *

All options

Smells (recognizable fragrances)

Words

Colours (coloured words and symbols)

Audible sounds

Symbols

Businesses can take many different forms to access a foreign market. The several business forms that are most commonly used in today's global business environment are: *

All options

Distributorship

Franchising agreement

Joint venture

Licensing agreement

Direct investment.

Agency,

One of the simplest ways to achieve an increased presence in foreign market is to appoint an agent in that particular market. *

True

False

Agency Relationship: relationship between one person who is a supplier of services or a manufacturer of goods (principal) and another person (agent) who carries out a specific task on the principal's behalf *

True

False

What are the common commercial reasons for appointing an agent? *

D) a desire to service the products in the country of sale

C) a need to comply with particular local laws or regulatory regimes

A, B, C, D

Only A, B and D

A) a need for more committed and indigenous marketing of the product or service

B) a need for more local sourcing of parts or personnel for political or competitive reasons

common characteristics of an Agency relationship includes all except for ? *

the agent is unable to bind the principal unless he or she has express or implied authority to do so

the agent simply facilitates the buying or selling on behalf of the principal;

the agent is not compensated by commission

the agent does not buy or sell for his or her own account;

Actual authority is created by the representation, made by the principal to the third party, that the agent is representing the principal. It is simply the authority that the agent appears to have. *

False

True

Duties of the agent includes all except for ? *

keeping information confidential

keeping in constant contact with the principal and informing the principal of relevant or important developments

obeying lawful instructions of the principal

no need to maintain the standards applicable to the performance of an agent in the particular industry or sector

What is correct about DISTRIBUTORSHIP? *

All options

Distributor is normally free to select its customers, determine pricing, incur expenses, and control its operations.

Normally, not compensated by the supplier. Profit is made by selling the product at a price exceeding what it purchases it for from the supplier, less any expenses incurred in bringing the product into the market and in selling it.

The distributor usually purchases goods on its own account from the supplier for resale to customers. Usually, the distributor will bear the obligation to deliver the product, to take on the economic risk of payment, and to extend credit to the customer.

Distributorships are more common in the case of standardized goods, such as cars, appliances, and consumer products.

Licence Agreement: a contract in which the owner (licensor) of a right (usually intellectual property rights such as patents, trademarks, or trade secrets) permits another party (the licensee) to manufacture and/or market the licensor's products in return for royalties, fees, or other forms of compensation *

True

False

By finding a foreign licensee, a firm accepts the risk and expense of foreign direct investment. If the foreign licensee has experience in manufacturing similar products, manufacturing capacity, and an established marketing network, the arrangement can be very attractive for the Canadian licensor. *

False

True

Characteristics of a Franchise Agreement includes *

All choices are ccorrect

D) Retention of the franchise conditional on the franchisee meeting certain sales quotas.

C) usually for a fixed term

Only a and c

A) strict control over every aspect of the franchisee's business.

Only a and b

B) Failure to comply with any of the detailed requirements for the conduct of the business may carry the penalty of termination.

What makes a joint venture successful? *

a well-established hierarchy;

All choices

complementary strengths and weaknesses of partners

a pre-determined dispute resolution mechanism

open and frequent communication;

realistic expectations on both (all) sides

Arbitration includes all except for ? *

more formalized and voluntary

does not ensure an outcome that is binding on the parties

neutral third party listens to the evidence

renders a decision that the parties have agreed in advance to honor

There has been a great deal written on the advantages of alternate forms of dispute resolution. However, there are still situations where litigation is the appropriate choice for dispute settlement *

True

False

Alternative Dispute Resolution: provides the opportunity for the parties to determine what law will apply to their dispute, who will "judge" a dispute, and what forms of evidence will be permitted. The most common methods of ADR are mediation, and arbitration. *

True

False

Types of arbitration: 1) ad hoc (the parties initiate and proceed with arbitration without the assistance of a permanent arbitral institution) and 2) Institutional (when the parties have agreed that arbitration will be conducted by a specified arbitral institution, according to its rules). *

True

False