Q&A Hero

Q: If a company issues depository receipts, then the corresponding shares need to be sent abroad.

Q: Depository receipts are non-negotiable instruments.

Q: To facilitate foreign trading in shares, brokerage firms use depository receipts.

Q: Euroclear is an international clearinghouse.

Q: The clearance and settlement procedure is uniform throughout the world.

Q: Exempt securities typically include those issued by governmental bodies, by banks, and by not-for-profit corporations.

Q: In the United States, offerings of less than $1 million in a 12-month period are exempt from registration.

Q: Bearer securities are registered on the books of the issuer.

Q: Bearer securities are transferred simply by delivery of the certificate.

Q: An uncertificated security is one whose ownership is recorded only on the books of the issuer.

Q: A certificated security can be transferred by negotiation.

Q: A bond is an equity security.

Q: A debt security represents an ownership interest in a business.

Q: Once a foreign-owned enterprise is in full operation, it is usually subject to periodic monitoring.

Q: Choice-of-law clause promises foreign investors that the host government will not change its tax for a certain period of time.

Q: Nondiscrimination guarantee is the assurance of a host state government that foreign investors will be able to take out of the state both the investment capital they brought in and the profits they earned.

Q: Depriving a person or company of private property without compensation is called nationalization.

Q: Manufacturing activities are allowed in bonded warehouses.

Q: Bonded warehouses are intended to be places for trade and business.

Q: No tariffs or duties are paid in export processing zones.

Q: Free trade areas are made up of two or more states.

Q: The largest free zones are called free cities.

Q: Under the FCPAs antibribery provisions, it is not a crime to pay an official to process a visa.

Q: Product liability laws are part of the federal laws in the United States.

Q: Under the common law theory of strict liability, defendants cannot be held liable if they can prove they exercised reasonable care.

Q: The Japanese Civil Code uses the concept of strict liability for imposing liability for defective products.

Q: A blocking statute makes it easier for a successful plaintiff to enforce a U.S. judgment outside the United States.

Q: Article 82 of the European Community Treaty does not have an exception clause.

Q: With regards to trade prohibitions, Article 81 of the European Community Treaty is analogous to Section 2 of the Clayton Act.

Q: The principal limitation of the assumption of personal jurisdiction by U.S. courts is the federal constitutional requirement of due process.

Q: The American antitrust laws authorize a court to assume personal jurisdiction if a defendant has the contacts specified by Section 12 of the Clayton Act.

Q: A group boycott is an example of a per se violation.

Q: A holding company is a branch that in turn owns other branches.

Q: Setting up a subsidiary can benefit a multinational firm because the subsidiarys company status insulates the parent from unlimited liability.

Q: A branch is an independently organized and incorporated company.

Q: A companys service office in a host nation would be considered a branch of the company.

Q: An agent (in a host nation) of a principal is subject to the laws of the principals country.

Q: An agents authority is limited to what the parent company delegates to him or her.

Q: A representative office does not directly conduct business for the parent company.

Q: An international multinational enterprise consists of a single parent company that operates in foreign markets through independent agents.

Q: A subsidiary is considered a separate legal entity from its parent company.

Q: A national multinational enterprise is the one in which a parent firm established in one country establishes wholly owned branches and subsidiaries in other countries.

Q: When a firm organized in one country contracts with an independent foreign firm to carry out sales or purchasing abroad, it is known as a multinational enterprise.

Q: The rights and benefits accruing to the company belong to the company, not to its owners.

Q: A corporation and its owners are considered a single juridical entity.

Q: Establishing a branch in a foreign country does not create a true multinational enterprise.

Q: A business that grants licenses to a foreign national or foreign business entity is not a multinational enterprise.

Q: How do the courts determine the members of a common enterprise?

Q: Apart from the long arm statute, what other criteria must a claimant fulfill in order to establish personal jurisdiction requirements of U.S. products liability laws?

Q: How is the theory of negligence in product liability different in common law states compared to countries that dont follow common law?

Q: State the article in the European Community Treaty that is analogous to Section 2 of the Sherman Act.

Q: What are the three tests that are used by the jurisdictional rule of reason in determining jurisdiction in anti-trust cases?

Q: What are the different types of per se violations? How does a court deal with a per se violation?

Q: How are multinational enterprises regulated by the home state?

Q: Describe a joint venture as a business model.

Q: Briefly describe the subordinate structures of representative office, an agent, and a branch.

Q: Discuss the importance of the separate legal identity of juridical entities in business.

Q: Which of the following is the reason why alter ego companies come under the purview of piercing the company veil? A. because the company has no decision-making power independent of its parent company B. because the company had insufficient capital when being formed C. because the shareholders use company assets for personal benefit D. because the shareholders of that company assumes personal liability

Q: ________ is an expression indicating that the legal fiction that a company is a separate legal entity will be set aside and the shareholders of the company will be held liable for its conduct as if they were partners in a partnership. A. Fruit of the poisonous tree B. Pierce the company veil C. Ball park figure D. Right of first refusal

Q: Which of the following describes sharp practices of business? A. business dealings meant to obtain a benefit for a person or firm regardless of the means used B. business exchanges where the manufacturer and consumer are the same C. business plans that also take social responsibility into account D. business practices that are ethical and moral

Q: According to the doctrine of ________, a municipal court will decline to hear a dispute when it can be better or more conveniently settled in a foreign council. A. negligence per se B. privity of contract C. res ipsa loquitur D. forum non conveniens

Q: Which of the following doctrines excuses an injured claimant who can show that a product was defective when it left the hands of the defendant from having to prove that the defendant caused the defect? A. the Mackay doctrine B. the doctrine of negligence per se C. the doctrine of privity D. the doctrine of res ipsa loquitur

Q: Which of the following would constitute as an example of negligence per se? A. Mellissa not checking if the new pair of jeans she bought was already defective B. Stella receiving a consignment of books that were damaged during shipment C. Matt buying a refrigerator that did not meet statutory safety requirements D. Shelton hurting himself with a drill because of a faulty lever

Q: A legal relationship sufficiently close and direct to support a legal claim on behalf of or against another with whom the relationship exists is referred to as ________. A. accommodation B. privity C. mutual consent D. claim preclusion

Q: ________ are laws enacted in some countries to obstruct the extraterritorial application of U.S. antitrust laws by limiting a plaintiffs right to obtain evidence or to enforce a judgment, and that allows a defendant to bring suit locally to recover punitive damages paid in the United States. A. Blocking statutes B. Jim Crow statutes C. Consent decrees D. Whistleblower statutes

Q: Which of the following is the reason why the Webb Pomerene Act is cited as a criticism of the United States antitrust laws? A. because it encourages foreign companies to invest in the United States B. because it exempts U.S. export associations from compliance with the Sherman Act C. because it provides tax cuts for subsidiaries of foreign-national companies in the United States D. because it allows for punitive treble damages to be brought by private plaintiffs

Q: Under the ________, companies carrying on business outside the United States will come within the subject-matter jurisdiction of an American court if their business activity is intended to affect U.S. commerce and is not de minimis. A. national eligibility test B. minimum contact test C. effects test D. per se test

Q: Which of the following tests is used to determine whether a court has subject-matter jurisdiction in an American antitrust case? A. the effects test B. the minimum contact test C. the national eligibility test D. the per se test

Q: The _______ is a jurisdictional test required by due process that looks to see if a person had such associations with a state, did business within the state, and could reasonably have anticipated that it would have to defend itself there. A. effects test B. minimum contacts test C. jurisdictional rule of reason test D. per se test

Q: The American antitrust laws authorize a court to assume personal jurisdiction if a defendant has the contacts specified by ________. A. the Federal Trade Commission Act B. Section 1 of the Sherman Act C. an applicable state long arm statute D. the Robinson-Patman Act

Q: Which of the following describes the long arm statute? A. A law defining the kinds of partnerships that can be formed between corporations or individuals and foreign companies. B. A law defining the conduct of a foreign person within a state that will subject that person to the jurisdiction of the state. C. A law defining the kind of companies that a company can set up in a foreign country. D. A law defining the kinds of awards that can be sought in an anti-trust case against the government.

Q: Which of the following is true of American anti-trust laws? A. It does not require the defendant to have personal jurisdiction. B. It is not affected by the long arm statute. C. It can only award treble charges in cases involving the government. D. It can be applied only when the court has subject-matter jurisdiction.

Q: The ________ was enacted in 1914 to expand the enforcement provisions of the Sherman Antitrust Act. It defines exclusive dealing and tying clauses, mergers that result in monopolies, and interlocking directorates as being unfair business practices. A. Federal Trade Commission Act B. Sherman Act C. Robinson-Patman Act D. Clayton Act

Q: The Robinson-Patman Act of 1936 was added to the panoply of American anti-trust law to make ________ illegal. A. anticompetitive mergers B. tying arrangements C. monopolization D. price discrimination

Q: Which of the following acts forbids monopolies and attempts to monopolize commerce or trade either between the states of the United States or in international commerce affecting the United States? A. Section 2 of the Sherman Act B. Section 2(a) of the Robinson-Patman Act C. Section 4 of the Clayton Act D. Section 7 of the Clayton Act

Q: Once a particular kind of activity is classified as a per se violation, the courts then ________. A. apply the case-by-case rule of reason analysis for that particular case B. directly consider an appropriate remedy for that particular case C. consider the level of justifiability of the violation for that particular case D. check if the violation breaches Section 1 of the Sherman Act

Q: ________ is a per se violation, where a seller at one level sells goods to a buyer at a different level on the condition that the latter will not resell below an agreed-upon price. A. Group boycott B. Vertical price fixing C. Horizontal price fixing D. Horizontal market division

Q: Once a particular kind of activity is classified as a ________violation, the courts do not apply the case-by-case rule of reason analysis but proceed directly to a consideration of the appropriate remedy in the particular case. A. rule of reason B. per se C. consent decree D. Noerr doctrine

Q: ________ prohibits contracts, agreements, and conspiracies that restrain interstate or international trade. A. Section 2 of the Taft-Hartley Act B. Section 2(a) of the Robinson-Patman Act C. Section 4 of the Clayton Act D. Section 1 of the Sherman Act

Q: The ________ is a rule applied by courts on a case-by-case basis requiring them to consider all of the circumstances in deciding whether a restrictive practice should be prohibited as imposing an unreasonable restraint on competition in violation of Sherman Act Section 1. A. per se rule B. choice of law rule C. rule of reason D. rule of reciprocity