1. When it seems likely that a licensee may develop improvements in the licensed technology, a licensor may wish to include a ____ in the license agreement.
a. Grant back provision.
b. Field use provision.
c. Technology transfer.
d. Promise of confidentiality.
2. TRIPS requires every member of the World Trade Organization to:
a. Abide by the Paris Convention.
b. Abide by the Berne Convention.
c. Apply national treatment to foreign owners of intellectual property rights.
d. Provide patent protection for processes.
e. All of the above.
3. World Motors assembles automobiles in the United States from engines produced by its subsidiary corporation in Country X. In order to shift its tax liability, World Motors instructs the subsidiary in Country X to overvalue its invoice price of the engines. This is known as:
a. Price discrimination.
b. Foreign source income.
c.Transfer pricing.
d. Taxation pricing.
4. A U.S. enterprise that wishes to establish an entity abroad under its control may create a subsidiary or branch:
I. Once either of these is established, the company may waive Rights of Protection under the U.S. bilateral investment protection agreements.
II. If the company chooses a subsidiary, it will not be directly answerable for liability.
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
5. Under the modern traditional theory, the sovereign may nationalize foreign-owned property only where:
a. It is for a public purpose.
b. The foreign firm that owned the property was operating it unprofitably.
c. A communist government takes over the country.
d. The foreign firm has continuously violated the laws of the host country.