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Chapter 07 - The International Legal Environment: Playing by the Rules
Chapter 07
The International Legal Environment: Playing by the Rules
1. The form of law found in the United States and England is classified as civil or code law.
True False
2. The form of law found in Germany, France, and Japan is called civil or code law.
True False
4. Under code law, the legal system is generally divided into three separate codes:
commercial, civil, and criminal.
True False
7-1
Chapter 07 - The International Legal Environment: Playing by the Rules
9. When dealing with foreign countries, a domestic marketer should refer to "international
commercial law" for guidance.
True False
10. Most disputes that arise in commercial transactions are settled informally.
True False
14. One of the deterrents to litigation with respect to disputes in the international business
arena is the fear of creating a poor image and damaging public relations.
True False
7-2
Chapter 07 - The International Legal Environment: Playing by the Rules
16. For American companies, establishing rights in the United States confers protection for
their rights universally.
True False
17. In the United States, a common-law country, ownership of intellectual property rights is
established by registration versus prior use (whoever registers first is considered to be the
rightful owner).
True False
19. The General Agreement on Trade and Tariffs, a major provision of the World Trade
Organization, is the most comprehensive multilateral agreement on intellectual property to
date.
True False
20. Charging what the market will bear is a suggested strategy for IP-rich firms to make
money in China.
True False
21. All countries have laws regulating marketing activities in promotion, product
development, labeling, pricing, and channels of distribution.
True False
7-3
Chapter 07 - The International Legal Environment: Playing by the Rules
22. Internet Service Providers (ISPs) buy and register descriptive nouns, geographic names,
names of ethnic groups and pharmaceutical substances, and other similar descriptors and hold
them until they can be sold at an inflated price.
True False
23. The United States passed the most stringent green marketing laws that regulate the
management and recycling of packaging waste.
True False
24. Leaving the political boundaries of a home country with a business venture has been
interpreted to mean that a company is then exempt from home-country laws because business
is not being conducted in that home-country.
True False
25. The responsibility of determining if a license is required rests with the exporter.
True False
26. Which of the following forms of law was derived from English law?
A. Code law
B. Common law
C. Religious law
D. Civil law
E. Universal law
7-4
Chapter 07 - The International Legal Environment: Playing by the Rules
27. Which of the following types of law is primarily found in the United States, England,
Canada, and other countries once under English influence?
A. Code law
B. Common law
C. Religious law
D. Civil law
E. Universal law
29. Civil or code law was derived from which of the following?
A. English law
B. Economic law
C. Greek law
D. Persian law
E. Roman law
30. The basis for _____ is tradition, past practices, and legal precedents set by the courts
through interpretations of statutes, legal legislation, and past rulings.
A. litigation
B. common law
C. code law
D. constitutional rights
E. intellectual property
7-5
Chapter 07 - The International Legal Environment: Playing by the Rules
31. _____ seeks "interpretation through the past decisions of higher courts which interpret the
same statutes or apply established and customary principles of law to a similar set of facts."
A. Constitutional law
B. Family law
C. Criminal law
D. Civil law
E. Common law
33. Under ___, the legal system is generally divided into three separate codes: commercial,
civil, and criminal.
A. constitutional law
B. code law
C. family law
D. religious law
E. traditional law
34. Laws governing _____ offer the most striking differences between common-law and
code-law systems.
A. international trade
B. civil disputes
C. criminal offence
D. intellectual property
E. domestic industry
7-6
Chapter 07 - The International Legal Environment: Playing by the Rules
35. Under common law, ownership is established by _______; under code law, ownership is
determined by ___.
A. heredity; shareholding
B. use; registration
C. tradition; legal right
D. legal right; patent
E. shareholding; use
36. The basis for which of the following is tradition, past practices, and legal precedents set
by the courts through interpretations of statutes, legal legislation, and past rulings?
A. Common law
B. Code law
C. Islamic law
D. Marxist-socialist tenets
E. Legal tradition
37. If law is founded on tradition, past practices, legal precedents set by the courts through
interpretations of statutes, legal legislation, and past rulings, it is called:
A. common law
B. code law
C. Islamic law
D. Marxist-socialist tenets
E. legal tradition
38. Which of the following is based on an all-inclusive system of written rules of law that is
generally divided into commercial, civil, and criminal sections?
A. Common law
B. Code law
C. Islamic law
D. Marxist-socialist tenets
E. Legal tradition
7-7
Chapter 07 - The International Legal Environment: Playing by the Rules
39. _____ is considered complete as a result of catchall provisions found in most of this type
of law's system.
A. Common law
B. Code law
C. Islamic law
D. Marxist-socialist tenets
E. Legal tradition
40. Apart from intellectual property laws, another illustration of how fundamental differences
in the common and code systems can cause difficulty is:
A. civil laws.
B. laws governing export and import.
C. heredity laws.
D. criminal laws.
E. in the performance of a contract.
7-8
Chapter 07 - The International Legal Environment: Playing by the Rules
43. Among the unique aspects of Islamic law is the prohibition against the payment of:
A. taxes.
B. profits.
C. interest.
D. equity.
E. accounting fees.
44. Under ___, the legal system is subordinate to prevailing economic conditions.
A. common law
B. code law
C. Islamic law
D. Marxist-socialist tenets
E. legal tradition
45. Because of political changes in the late twentieth century, which of the following
countries has had to build from scratch an entire commercial legal system?
A. France
B. Germany
C. Taiwan
D. Russia
E. Saudi Arabia
46. The World Court can adjudicate disputes between which of the following?
A. Disputes between governments
B. Disputes between a company and a government
C. Disputes between two companies
D. Disputes between a private citizen and a government
E. Disputes between trade bodies of various countries
7-9
Chapter 07 - The International Legal Environment: Playing by the Rules
48. In settling international commercial transaction disputes, which of the following methods
accounts for the majority of settlements?
A. Criminal suits
B. Conciliation
C. Arbitration
D. Litigation
E. Coercion
49. Another name for conciliation as a means for settling a dispute in international commerce
is:
A. mediation.
B. informal settlement.
C. arbitration.
D. litigation.
E. coercion.
50. A nonbonding agreement between parties to resolve disputes by asking a third party to
mediate differences is called:
A. litigation.
B. informal settlement.
C. arbitration.
D. conciliation.
E. coercion.
7-10
Chapter 07 - The International Legal Environment: Playing by the Rules
51. Ralph Richards has been attempting to solve a problem that his company has with a
contract default by the Dutch government. He has tried conciliation but the two parties could
never find any common ground on which to begin a fruitful negotiation for settlement. Which
of the following will most likely be the course of action that both of the two parties will try
next?
A. Mediation
B. Informal settlement
C. Arbitration
D. Litigation
E. Coercion
52. In the usual _____ procedure, parties select a disinterested and informed party or parties to
sever as a referee to determine the merits of the case and make a judgment that both parties
agree to honor.
A. arbitration
B. informal settlement
C. conciliation
D. litigation
E. coercion
53. The first step that most arbitrators try to resolve a dispute between two parties is to
attempt:
A. coercion.
B. informal settlement.
C. fault finding or wrong doing.
D. litigation.
E. conciliation.
7-11
Chapter 07 - The International Legal Environment: Playing by the Rules
55. Which of the following is usually placed in the arbitration clause that is becoming
standard in many international contracts?
A. The preferred court/legal body of arbitration.
B. The place of the arbitration (city and/or country).
C. The titles of the arbitrators to be involved.
D. The age of the arbitrators to be involved.
E. The nationalities of the arbitrators.
56. Arbitration clauses require agreement on two counts. Which of the following is one of
those accounts?
A. The complainants agree on who is right and who is wrong.
B. The complainants agree on litigation issues.
C. The complainants agree to abide by the awards resulting from the arbitration.
D. The complainants agree to not hire legal counsel.
E. The complainants agree to hear the case before the World Court if the arbitration fails.
57. When all else fails in an international commercial dispute, the final step is:
A. conciliation.
B. to encourage one's government to force the other party to comply.
C. to find fault or wrong doing as a public relations device.
D. litigation.
E. coercion.
7-12
Chapter 07 - The International Legal Environment: Playing by the Rules
59. One authority suggests that settlement of every dispute should follow four steps. Which of
the following is considered to be the first step in this process?
A. Conciliate
B. Arbitrate
C. Coerce
D. Try to placate the injured party
E. Litigate
61. According the press on the topic, which of the following countries is the biggest piracy
problem?
A. Myanmar
B. China
C. Ukraine
D. Finland
E. Pakistan
62. According to the text Vietnam, Russia, Japan and _____ made major progress in reducing
software piracy from 2003 to 2006.
A. Tunisia
B. India
C. Iran
D. China
E. Myanmar
7-13
Chapter 07 - The International Legal Environment: Playing by the Rules
63. Which of the following commonly counterfeited products has the potential for doing the
greatest harm to the consuming public?
A. Toys
B. CDs
C. Pharmaceuticals
D. Software
E. Clothing
64. A famous case occurred in Japan where a Japanese business registered McDonald's world
famous trademark before McDonald's did and was given permission to use the trademark.
McDonald's eventually got the trademark back after a lengthy court battle and a monetary
award to the Japanese company. McDonald's learned that trademarks registered in the United
States:
A. must be ratified by the United Nations trademark protection agency.
B. are worthless.
C. are protected in the European Union under the Geneva Convention but not in Japan.
D. need to be registered with the World Court.
E. are not protected in other countries.
65. Which of the following countries has ownership of IP rights established by prior use—
whoever can establish first use is typically considered the rightful owner?
A. Japan
B. Brazil
C. Saudi Arabia
D. France
E. United States
7-14
Chapter 07 - The International Legal Environment: Playing by the Rules
68. Which of the following international conventions was established to recognize intellectual
property rights?
A. The Paris Convention
B. The Munich Agreement
C. The Tokyo Convention
D. The Eurasian Convention
E. The Kyoto Protocol
69. Which of the following conventions is responsible for the promotion of the protection of
intellectual property rights?
A. The Paris Convention
B. The Madrid Arrangement
C. The Tokyo Agreement
D. The Eurasian Convention
E. The United Nation's WIPO
70. Which of the following is the most comprehensive multilateral agreement on intellectual
property to date?
A. World Intellectual Property Organization Charter
B. Trade-Related Aspects of Intellectual Property Rights
C. Inter-American Convention Agreement
D. The Madrid Arrangement
E. Paris Agreement for the Protection of Industrial Property
7-15
Chapter 07 - The International Legal Environment: Playing by the Rules
71. Which of the following is NOT one of the traditional remedies by American companies to
protect intellectual property?
A. Threats to withdraw products from country
B. Complaints to U.S. government and WTO
C. Negotiation and dispute resolution
D. Preventative steps such as local representation
E. Complaints to country's government
72. A creative way for intellectually property rich companies to make money in China is ___.
A. enlist the Chinese government to sell their products
B. to charge what the market will bear
C. to sell older instead of the latest versions of their products
D. to sell only in select populated areas, i.e., major cities
E. to provide an extreme discount on next purchase
73. _____ is by its nature a global enterprise for which no political or national boundaries
exist.
A. The ASEAN
B. The OPEC region
C. The Internet
D. The European Union
E. The NAFTA region
74. _____ buy and register descriptive nouns, geographic names, names of ethnic groups and
pharmaceutical substances, and other similar descriptors and hold them until they can be sold
at an inflated price.
A. Patent trolls
B. Server farms
C. Domain name registries
D. Cybersquatters
E. Universal resource locators
7-16
Chapter 07 - The International Legal Environment: Playing by the Rules
75. All countries have laws regulating all of the following marketing activities EXCEPT:
A. promotion.
B. product development.
C. labeling.
D. channels of distribution.
E. production volume.
76. According to Canadian law, what is the standard expected by courts in Canada in
determining whether a representation is false or misleading?
A. De Novo standard
B. Credulous person standard
C. Clearly Erroneous standard
D. Arbitrary and Capricious standard
E. Discretionary standard
77. Which of the following acts developed by the European Union erases legal and trade
differences that have existed for decades between the member nations?
A. European Sanctity Act
B. European Antitrust Act
C. European Unification Act
D. Single European Market Act
E. No European Union Act exists
78. Which of the following countries has enacted the most stringent green marketing laws that
regulate the management and recycling of packaging waste?
A. Britain
B. France
C. Germany
D. United States
E. Japan
7-17
Chapter 07 - The International Legal Environment: Playing by the Rules
79. Which of the following is NOT one of the areas of antitrust enforcement in the European
Union and elsewhere?
A. Full-line forcing
B. Price discrimination
C. Supply restrictions
D. Competitiveness councils
E. Antimonopoly
80. The question of jurisdiction of U.S. law over acts committed outside the territorial limits
of the country has been settled by the courts through application of a long-established
principle of international law called the:
A. the right of imminent domain.
B. the legal transfer of power.
C. the rights of foreign powers and citizens.
D. the objective theory of jurisdiction.
E. the McNeil Principle of International Law.
81. The _____ of the United States makes it illegal for companies to pay bribes to foreign
officials, candidates, or political parties.
A. Constitution
B. Bill of Rights
C. Foreign Corrupt Practices Act
D. Best Practices Act
E. International Codes of Law
82. U.S. firms, their foreign subsidiaries, or foreign firms that are licensees of U.S. technology
cannot sell a product to a country in which the sale is considered by the U.S. government to
affect:
A. the competitive balance of world trade.
B. the competitive balance of free competition inside the U.S.
C. relationship with the world community.
D. the overall balance of payments of the United States.
E. the national security of the United States.
7-18
Chapter 07 - The International Legal Environment: Playing by the Rules
83. The first objective of these laws is to protect American consumers by ensuring that they
benefit from products and ideas produced by foreign competitors as well as by domestic
competitors. Which law is in discussion?
A. Incorporation laws
B. Intellectual property laws
C. Antitrust laws
D. Criminal laws
E. Monopoly laws
84. Which of the following U.S. government agencies oversees antitrust enforcement in
international commerce?
A. Department of State
B. Department of Justice
C. Department of Commerce
D. Department of Defense
E. Department of Home Land Security
85. Under the Antiboycott Law, U.S. companies are forbidden to participate in any
unauthorized foreign boycott. Which of the following situations brought about the
Antiboycott Law in the U.S.?
A. The boycott of Cuba by the U.S.
B. The boycott of South Africa by the world community.
C. The boycott of Israel by the Arab League.
D. The boycott of Iraq by the United States.
E. The boycott of the U.S. by the U.S.S.R. (the wheat embargo).
86. The Department of Commerce has published a revised set of export regulations to
alleviate many of the problems and confusions of exporting and to expedite the process. What
is it called?
A. Agreement on International Trade and Negotiations
B. Export-Import Manual
C. International Trade Regulations
D. Export Charter
E. Export Administration Regulations
7-19
Chapter 07 - The International Legal Environment: Playing by the Rules
87. Which of the following are the licenses required for products exported from the United
States?
A. International or bilateral license
B. General or a validated license
C. Single or multiple license
D. Exporter or third-party license
E. Shipment license or agent license
88. The responsibility of determining if a license is required rests with the ___.
A. Department of Commerce
B. industry regulatory body
C. exporter
D. U.S. Customs department
E. export agent
89. The exporter is responsible for selecting the _____ which leads to a description in the
Commerce Control List (CCL), which indicates the exportability status of the item.
A. Entity List Number
B. Priority Number
C. Export License Number
D. Control Number
E. Export Control Classification Number
90. Which of the following indicates the exportability status of the item based on the ECCN?
A. Commerce Control List
B. Entity List
C. Common List
D. Priority Export List
E. International Trade List
7-20
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sophistical plausibility. Rightly, then, was it proclaimed also by the
Greeks:
“Truth the queen is the beginning of great virtue.”[1034]
CHAPTER XI.
THE MYSTICAL MEANINGS IN THE PROPORTIONS OF NUMBERS,
GEOMETRICAL RATIOS, AND MUSIC.
He, then, who has first moderated his passions and trained
himself for impassibility, and developed to the beneficence of gnostic
perfection, is here equal to the angels. Luminous already, and like
the sun shining in the exercise of beneficence, he speeds by
righteous knowledge through the love of God to the sacred abode,
like as the apostles. Not that they became apostles through being
chosen for some distinguished peculiarity[1080] of nature, since also
Judas was chosen along with them. But they were capable of
becoming apostles on being chosen by Him who foresees even
ultimate issues. Matthias, accordingly, who was not chosen along
with them, on showing himself worthy of becoming an apostle, is
substituted for Judas.
Those, then, also now, who have exercised themselves in the
Lord’s commandments, and lived perfectly and gnostically according
to the gospel, may be enrolled in the chosen body of the apostles.
Such an one is in reality a presbyter of the church, and a true
minister (deacon) of the will of God, if he do and teach what is the
Lord’s; not as being ordained[1081] by men, nor regarded righteous
because a presbyter, but enrolled in the presbyterate[1082] because
righteous. And although here upon earth he be not honoured with
the chief seat,[1083] he will sit down on the four-and-twenty thrones,
[1084] judging the people, as John says in the Apocalypse.
The Gnostic, then, is impressed with the closest likeness, that is,
with the mind of the Master; which He being possessed of,
commanded and recommended to His disciples and to the prudent.
Comprehending this, as He who taught wished, and receiving it in its
grand sense, he teaches worthily “on the house-tops”[1111] those
capable of being built to a lofty height; and begins with the doing of
what is spoken, in accordance with the example of life. For He
enjoined what is possible. And, in truth, the kingly man and Christian
ought to be ruler and leader. For we are commanded to be lords over
not only the wild beasts without us, but also over the wild passions
within ourselves.
Through the knowledge, then, as appears, of a bad and good life
is the Gnostic saved, understanding and executing “more than the
scribes and Pharisees.”[1112] “Exert thyself, and prosper, and reign,”
writes David, “because of truth, and meekness, and righteousness;
and thy right hand shall guide thee marvellously,”[1113] that is, the
Lord. “Who then is the wise? and he shall understand these things.
Prudent? and he shall know them. For the ways of the Lord are
right,”[1114] says the prophet, showing that the Gnostic alone is able
to understand and explain the things spoken by the Spirit obscurely.
“And he who understands in that time shall hold his peace,”[1115]
says the Scripture, plainly in the way of declaring them to the
unworthy. For the Lord says, “He that hath ears to hear, let him
hear,”[1116] declaring that hearing and understanding belong not to
all. To the point David writes: “Dark water is in the clouds of the
skies. At the gleam before Him the clouds passed, hail and coals of
fire;”[1117] showing that the holy words are hidden. He intimates that
transparent and resplendent to the Gnostics, like the innocuous hail,
they are sent down from God; but that they are dark to the multitude,
like extinguished coals out of the fire, which, unless kindled and set
on fire, will not give forth fire or light. “The Lord, therefore,” it is said,