Questions:
1. Company X in France signs an agreement with a U.S. toy company, Freedo, to utilize their name and trademark to sell Freedo toys in France. At the end of the first year, Company X pays Freedo 35% of their net sales. Which type of agreement is at work here?
a. Distributorship agreement
b. Franchise agreement
c. Licensing agreement
d. Sales representation agreement
2. What is the most important for companies exporting consumer goods to resolve usage and safety issues?
a. National safety standards may be lower than that of the exporter country
b. The product may be banned for not meeting safety regulations
c. Consumers may reject the goods as inferior
d. To avoid corruption and bribery in order to sell the goods in a foreign market
3. Which of the following is an example of a nonactionable subsidy?
a. Expenditures on research and development
b. Tax credits to a multinational company
c. Special tariffs placed on subsidized goods
d. Direct fund transfers based on export performance
4. Which of the following is a similarity between the Uniform Commercial Code (UCC) and Convention on the International Sale of Goods (CISG)?
a. Parol evidence rule
b. Express warranties
c. Mailbox rule
d. Statute of frauds
5. A firm in Illinois is in dispute over a contract with a firm in Utah. They decide to litigate to solve the dispute under the laws of the state of Illinois. This is an example of the usage of:
a. the choice-of-law clause
b. forum selection agreement
c. political question doctrine
d. forum non conveniens