Chapter 7

Question 1

World’s different legal system based on 4 heritages

Answer 1

1. ) Common Law
2. ) Civil or Code Law
3. ) Islamic Law
4. ) Marxist-Socialist Tenets

Question 2

a country’s laws may be based on one of the four legal systems, but __________ may vary

Answer 2

individual interpretation

Question 3

Seeks interpretation through the past decisions of higher courts which interpret the same statues

Answer 3

Common Law

Question 4

Are recognized as not being all-inclusive

Answer 4

Common Law

Question 5

Intellectual property ownership is established by use

Answer 5

Common Law

Question 6

Legal system is generally divided into three separate codes

Answer 6

Code Law

Question 7

three separate codes of Code Law

Answer 7

1. ) commercial
2. ) civil
3. ) criminal

Question 8

Considered complete as a result of catchall provisions found in most code-law systems

Answer 8

Code Law

Question 9

Intellectual property ownership by registration

Answer 9

Code Law

Question 10

Official name of Islamic Law

Answer 10

Shari’ah

Question 11

basis of interpretation is the Koran

Answer 11

Islamic Law

Question 12

prescribes specific patterns elf social and economic behavior for all individuals

Answer 12

Islamic Law

Question 13

Islamic Law prohibits the

Answer 13

payment of interest

Question 14

Islamic Law also prohibits

Answer 14

alcohol, gambling, and casinos

Question 15

are increasing their trade with non-Marxist-Socialist countries

Answer 15

Marxist-Socialist countries

Question 16

had to be developed that allowed international commerce

Answer 16

Commercial legal systems

Question 17

Pattern for development

Answer 17

varies among countries

Question 18

used pre-WWII laws; easier transition

Answer 18

Czech Republic and Poland

Question 19

had to start from scratch; slow and disjointed; Big Problem- Vaguely worded laws

Answer 19

China and former Soviet Union

Question 20

judicial body exists to deal with legal commercial problems arising between citizens of different countries

Answer 20

There is no judicial body to handle disputes

Question 21

Legal disputes can arise in three situations

Answer 21

• Between governments
• Between a company and a government
• Between two companies

Question 22

Jurisdiction is generally determined on the basis of:

Answer 22

• Jurisdictional clauses included in contracts
• Where a contract was entered into
• Where the provisions of the contract were performed

Question 23

Disputes tend to arise in international trade when

Answer 23

• the buyer refuses to pay,
• the product is of inferior quality, or
• the shipment arrives late

Question 24

First step of International dispute resolution

Answer 24

informal resolution

Question 25

If no information resolution, three ways to deal with international disputes:

Answer 25

- Conciliation - Arbitration - Litigation

Question 26

Also called mediation

Answer 26

Conciliation

Question 27

A nonbinding agreement between parties to resolve disputes by asking a third party to mediate differences - Sessions are private - All conferences between parties and the mediator are confidential

Answer 27

Conciliation

Question 28

conciliation is preferred by the _____

Answer 28

Chinese

Question 29

should be included in all conciliation agreements

Answer 29

an arbitration clause

Question 30

is not legally binding

Answer 30

conciliation

Question 31

Parties involved select a disinterested and informed party as referees to determine the merits of the case and make a judgment that both parties agree to honor

Answer 31

arbitration

Question 32

The popularity of arbitration has led to a proliferation of

Answer 32

arbitral centers

Question 33

should be used in contracts and legal documents

Answer 33

arbitration clause

Question 34

Arbitration clauses require agreement on two counts:

Answer 34

- To use arbitration process to settle dispute | - To abide by the awards resulting from the arbitration

Question 35

a last resort to conflict resolution

Answer 35

litigation

Question 36

deterrents to litigation

Answer 36

- Fear of creating a poor image and damaging public relations - Fear of unfair treatment in a foreign court - Difficulty in collecting a judgment that may otherwise have been collected in a mutually agreed settlement through arbitration - High cost and time required - Loss of confidentiality

Question 37

Inventions, literary and artistic works, and symbols, names, images, and designs used in commerce

Answer 37

intellectual property

Question 38

Companies spend millions of dollars on

Answer 38

- Establishing brand names or trademarks | - Research to develop products, processes, designs, and formulas

Question 39

are among the most valuable assets

Answer 39

intellectual or industrial properties

Question 40

companies must be vigilant against

Answer 40

piracy and counterfeiting

Question 41

can do serious physical harm

Answer 41

counterfeit drugs

Question 42

protection of intellectual property rights must protect against:

Answer 42

- counterfeiting and piracy | - inadequate protection

Question 43

first company to use IP owns it (prior use)

Answer 43

Common Law

Question 44

first company to register IP owns it (registration)

Answer 44

Code Law

Question 45

Responsible for the promotion and protection of IP and administration of treaties

Answer 45

World Intellectual Property Organization (WIPO)—UN

Question 46

Most comprehensive multilateral agreement on IP

Answer 46

Trade-Related Aspects of Intellectual Property Rights—WTO

Question 47

must be in use in some countries

Answer 47

patents and trademarks

Question 48

IP approach in some countries

Answer 48

charge what market will bear -Warner Bros.

Question 49

has no political or national boundaries—truly global

Answer 49

the internet

Question 50

Register and hold Web names then sell them at an inflated price

Answer 50

cybersquatters

Question 51

Companies were deemed to have a__________ in a country it they had a permanent establishment there

Answer 51

taxable presence

Question 52

are making substantial progress

Answer 52

digital contracts

Question 53

have laws regulating marketing activities

Answer 53

all countries

Question 54

marketing activities

Answer 54

- Promotion - Product development - Labeling - Pricing - Channels of distribution

Question 55

Premiums, free gifts, and coupons prohibited

Answer 55

Austria

Question 56

Claims and statements must not be misleading and uses the “credulous person standard”

Answer 56

Canada

Question 57

Censorship of advertising

Answer 57

China

Question 58

U.S. products must now comply with

Answer 58

stricter EU standards

Question 59

focus on environmentally friendly products and product packaging

Answer 59

green marketing laws

Question 60

Manufactures, distributors, and retailers must accept returned packaging materials

Answer 60

Germany

Question 61

requires car manufactures to take back cars that no longer have resale value

Answer 61

EU (Green Marketing Law)

Question 62

Foreign Corrupt Practices Law

Answer 62

anti-bribery law

Question 63

Designed to combat restrictive business practices and to encourage competition

Answer 63

antitrust laws

Question 64

U.S. companies are forbidden to participate in an

Answer 64

unauthorized foreign boycott (anti boycott law)

Question 65

No export license is needed for a business, but a license may be required for

Answer 65

certain exports to certain destinations

Question 66

who's responsibility is it to know which exports require a license

Answer 66

the exporter

Question 67

National Security Laws

Answer 67

- U.S. firms, their subsidiaries, or their foreign licensees cannot sell particular products to certain countries - Restriction extends to the final destination, not just countries in which exports are directly shipped - Components of weapons of mass destruction may have dual purpose