1. ISO 9000 is important to doing business in Europe and ultimately globally because:
A. It is the clearance to be able to distribute products.
B. It is the universal framework for quality assurance in the EC.
C. It requires seven years of application process to be a certified provider.
D. Only EC companies are eligible to receive the mark.
2. The EU Commission coordinates the following areas:
A. Fisheries.
B. Monetary affairs.
C. Social policy.
D. A, B, and C.
E. A and B only.
3.. In the European Court of Justice,
A. Decisions are issued without dissenting opinions.
B. Justices are appointed for life.
C. Civil law traditions, more than common law traditions, are followed.
D. A, B, and C.
E. A and C only.
4. The Merger Treaty of 1965 integrated which of the following organizations into the structure of the European Economic Community:
A. Northern European Economic Community & Baltic Nations Economic League.
B. European Coal & Steel Community & European Atomic Energy Commission.
C. Scandinavian Economic league & Central European Fiscal Union of Free States.
D. No merger treaty was signed.
5. How many representatives is each member country allowed to appoint to the European Union’s Council:
A. Three.
B. Two.
C. One.
D. None, the members of the presiding council make the appointments.
6. The representatives who serve on the European Community's Commission are appointed by:
A. The representative's own government.
B. The Assembly.
C. The Court of Justice.
D. The Council.
7. The goals of the Maastricht Treaty included:
A. Promoting social progress and cohesion.
B. Assertion of the EU’s identity on the international scene.
C. Protection of the rights and interests of the Nationals of member states by introduction of a citizenship of the Union.
D. A and B only.
E. A, B, and C.
8. A is binding and directly applicable in all member states; and a ______ sets forth the result to be achieved but leaves to the individual states the responsibility to employ the appropriate steps:
A. Regulation; directive.
B. Rule; resolution.
C. Resolution; rule.
D. Directive; regulation.
9. The agreement that officially formed the European Community was:
A. The European Economic Community Act.
B. The Treaty of Rome.
C. GATT.
D. Organization for Economic Cooperation & Development.
10. The European Community's structure consists of:
A. Council of Ministers.
B. Court of Justice.
C. Representative Assembly.
D. B and C only.
E. A, B, & C.
Chapter 20
11. In many European countries, workers have been granted a right of consultation about or notice before reducing the work force. The country that generally grants its workers the most rights of participation is:
A. Great Britain.
B. France.
C. Germany.
D. Italy.
12. A number of countries in Europe require a two-tiered board of directors. The two-tiered boards are:
A. A supervisory board and a management board.
B. A minority board and a majority board.
C. An elected board and an appointed board.
D. A labor board and an administrative board.
13. Unlike the case in the U.S., in many foreign nations, particularly European countries, when an investor acquires a firm:
I. The investor is compelled to adhere to existing employment arrangements.
II. The investor must raise workers' salaries at a set percentage determined by the host country.
A. I only.
B. II only.
C. Both I and II.
D. Neither I nor II.
14. In the Kochi Hoso case, a Japanese radio broadcaster sued his employer for dismissal. As required by Japanese law, the employer maintained written rules specifying conditions for which the employee could be discharged. The employee was late for a broadcast on two occasions and was discharged pursuant to the written rules. The court ruled that:
A. The employee could be discharged because the rules were in writing according to Japanese law.
B. The employee could be discharged because of the seriousness of the offense.
C. The employee was reinstated to his job because the law was unconstitutional.
D. The employee was reinstated to his job because the discharge was significantly unreasonable under the circumstances and in violation of the socially accepted view.
15. In the Civil Rights Act of 1991, Congress extended Title VII to:
I. U.S. firms operating outside the United States under the control of a U.S. entity.
II. U.S. firms operating outside the United States except where compliance with Title VII would violate the local law of the country where the firm is located.
III. Foreign firms operating abroad that employ U.S. citizens.
A. I only.
B. I and II.
C. I and III.
D. II and III.
16. Which of the following classifications are treated most similarly under the laws of Europe, the United States, and Japan?
A. Religion.
B. Nationality.
C. National origin.
D. Sex.
17. Ms. Anderson is a 53-year-old American citizen working in New York for QMB, Inc., a wholly owned subsidiary of QMB, GMBH, a German corporation. She applies for the position of Vice President of QMB, GMBH*a position based in Munich*and is denied the promotion on the basis of her age. How will a U.S. federal court treat Ms. Anderson's failure-to-promote claim under the ADEA?
A. The court must proceed with the case since Ms. Anderson is a U.S. citizen working for QMB, Inc., a U.S. corporation.
B. The court will dismiss the claim on the grounds that the ADEA does not cover employment decisions regarding employment outside the United States made by a foreign-run company.
C. The court will dismiss the claim on the grounds that age is a bona fide occupational qualification to the promotion position.
D. The court will dismiss the claim on the grounds of forum non conveniens.
18. According to the EEOC, under Title VII as amended in 1991, a U.S. company is liable for unlawful discrimination against U.S. citizen/employees in which of the following cases?
A. The foreign subsidiary is 100% owned by a U.S. parent company.
B. The foreign subsidiary is at least 50% owned by the U.S. parent company.
C. The foreign subsidiary is 25% owned by a U.S. company.
D. A, B, and C are all situations where a U.S. company may be liable under Title VII.
Chapter 21
19. Under NAFTA’s Environmental Side Agreements:
A. Mexican environmental laws must gradually approach U.S. and Canadian standards for clean air, clean water, and hazardous waste.
B. U.S. industries can request a tariff on the import of products from Mexico that are produced under environmentally unsustainable methods.
C. NAFTA benefits may be suspended where any state party has shown a pattern of failure to effectively enforce its environmental law.
D. A and B.
E. A and C.
20. In the Lobsters from Canada case, the U.S.-Canada Free Trade Agreement Binational Panel determined that:
A. The U.S. restriction was invalid because it applied extraterritorially.
B. The U.S. restriction was valid as an “internal measure” subject only to GATT Article III.
C. The U.S. restriction was invalid because it treated small Canadian lobsters differently than small U.S. lobsters.
D. The U.S. restriction was valid, because even though Article XI applied, the exception under Article XX also applied (restrictions permitted because they relate to conservation of an exhaustible natural resource).
21. In the area of solving international environmental issues, the North American approach has been to use:
A. Arbitration.
B. The World Court.
C. Bilateral treaties.
D. Mediation.
22. Multinational agencies have advanced the environmental effort by applying uniform environmental standards to projects they finance. For example:
A. The World Health Organization has guidelines for pollution controls.
B. The World Bank has a volume of Environmental Guidelines for industrial projects.
C. The Tokyo Stock Exchange allows no investors who do not adhere to its environmental guidelines.
D. None of the above.
23 Before a U.S. firm can export chemical substances subject to the U.S. Toxic Substances Control Act:
A. The firm must notify the EPA of the export.
B. The firm must maintain adequate records.
C. The EPA must notify the foreign country of destination.
D. All of the above.
24. The “circle of poison” refers to:
A. Getting food poisoning when traveling to a country with unsanitary food preparation conditions.
B. Chemicals that are at first banned in the United States, then allowed to be produced, and then banned again.
C. The foreign sale of U.S.-made pesticides that have been banned in the United States and then reimported as a residue on imported foods.
D. None of the above.
Chapter 16
25. Under the FCPA, a payment can be illegal if it is made:
A. Corruptly, knowingly, and to expedite the performance of a routine governmental action.
B. Corruptly, negligently, and to expedite the performance of a routine governmental action.
C. Criminally, intentionally, and in order to obtain or retain business.
D. Corruptly, knowingly, and for assistance in obtaining business.
E. Any payment that is illegal under local law is illegal under the FCPA.
26. It is a defense to a prosecution under the Foreign Corrupt Practices Act that:
A. The amount paid was under $5,000.
B. Adequate records were kept to accurately reflect the transaction.
C. The payment was considered legal under the local law of the country in which the payment was made.
D. The payment was made to expedite the performance of a routine governmental action, such as processing paperwork needed for a travel visa.
E. The U.S. defendant can show that the payment was made in the routine course of business.
27. Corporate penalties for violating the FCPA include:
A. Fines of no more than $100,000.
B. Fines up to $2,000,000.
C. Revocation of the firm's license to do business in a foreign country.
D. Punitive damages.
E. Two of the above.
28. Individual penalties for violating the FCPA include:
A. Imprisonment of up to five years and a fine of up to $100,000.
B. Imprisonment of up to fifteen years and a fine of up to $10,000.
C. Fines, imprisonment, and discharge from the corporation.
D. Fines, imprisonment, and revocation of the right to travel in the foreign country.
E. None of the above.
29. Sales representatives that perform specific acts at the specific direction of the company they represent are considered:
A. Agents of the company.
B. Principals of the company.
C. Independent contractors of the company.
D. None of the above.
30. Under EC Directive 86/653, an evergreen contract occurs when the agency relationship has:
A. Lasted for three or more years.
B. Been continued beyond the original fixed term with no formal renewal.
C. Been terminated by giving a three-month written notice.
D. All of the above.
31. Pursuant to EC Council Directive 86/653, an economic conditions alarm is sounded by the principal for the benefit of his or her agent:
A. To give six-months prior notice of an increase in the agent's sales quota.
B. When the inflation rate of the host country threatens to precipitate a price increase.
C. When currency exchange rates rise to a level that makes business unprofitable.
D. When sales forecasts indicate that the agent's volume of business will be significantly lower than normally expected.
32. An independent agent is often characterized by which of the following:
A. Principal is involved in working out details of the agent’s work organization.
B. The agent is always subject to a change in instructions.
C. The agent works for many clients.
D. The agent is paid on an hourly or salaried basis.
E. All of the above.
33. Advertising of sexually explicit messages would be most severely regulated in which of the following countries:
A. Denmark.
B. Sweden.
C. The United States.
D. Saudi Arabia.
Extra Credit
34. Which of the following is prohibited in more countries?
A. False advertising.
B. Advertising to children.
C. Sexually explicit advertising.
D. Advertising in a foreign language.
35. In Germany, the attitudes toward exaggeration in advertising are:
A. Not highly regulated,
B. Highly regulated,
C. The law is uncertain and in a state of change,
D. Best illustrated by the Carbolic Smoke Ball case.