International Business Law 2026 Case Study Prep

Compliance, Contracts & Dispute Resolution (100 Questions) 1. What is the primary purpose of the "CISG" (UN Convention on Contracts for the International Sale of Goods)? A) To regulate the price of gold B) To provide a modern, uniform, and fair framework for contracts for the international sale of goods C) To manage international criminal law D) To replace the domestic laws of all countries with a single global law Correct Answer: B) To provide a modern, uniform, and fair framework for contracts for the international sale of goods 2. "Force Majeure" is a contract clause that: A) Forces a company to pay its debts early B) Excuses a party from performing its contractual obligations due to unforeseen, extraordinary events (e.g., natural disasters, wars) C) Allows a company to change the CEO D) Requires all employees to work overtime Correct Answer: B) Excuses a party from performing its contractual obligations due to unforeseen, extraordinary events (e.g., natural disasters, wars) 3. In international law, "Sovereign Immunity" means: A) A king or queen never pays for products B) A government is generally immune from the jurisdiction of foreign courts (with exceptions for commercial activity) C) A company is immune from taxes in its home country D) A lawyer can never be arrested Correct Answer: B) A government is generally immune from the jurisdiction of foreign courts (with exceptions for commercial activity) 4. What is "Arbitration" in a business context? A) A type of aggressive marketing B) A private method of dispute resolution where a neutral third party makes a binding decision C) The process of buying and selling currencies D) A public trial in a government court Correct Answer: B) A private method of dispute resolution where a neutral third party makes a binding decision 5. The "New York Convention" is critical for international business because it: A) Regulates the stock exchange in New York B) Provides for the recognition and enforcement of foreign arbitral awards in over 160 countries C) Sets the rules for international tourism D) Established the United Nations Correct Answer: B) Provides for the recognition and enforcement of foreign arbitral awards in over 160 countries 6. "Choice of Law" clause in a contract determines: A) Which lawyer will be hired B) Which country's laws will be used to interpret the contract and resolve disputes C) The maximum price of the goods D) The language the contract must be written in Correct Answer: B) Which country's laws will be used to interpret the contract and resolve disputes 7. " Jurisdiction" refers to: A) The moral authority of a judge B) The legal power of a court to hear and decide a case C) The amount of money a company has in court D) A type of law degree Correct Answer: B) The legal power of a court to hear and decide a case 8. "Forum Selection" clause specifies: A) Which internet forum the company will use for ads B) The specific court or location where a dispute will be heard C) The time of day a meeting will occur D) The type of software used for video calls Correct Answer: B) The specific court or location where a dispute will be heard 9. What is the "EU AI Act" (2026 update) primarily focused on? A) Banning all computers in Europe B) Regulating artificial intelligence based on its potential to cause harm (risk-based approach) C) Giving robots the same rights as humans D) Promoting the sale of European hardware Correct Answer: B) Regulating artificial intelligence based on its potential to cause harm (risk-based approach) 10. "GDPR" (General Data Protection Regulation) protects: A) The privacy and personal data of individuals in the EU B) The physical property of European companies C) The patents of tech giants D) The security of government buildings Correct Answer: A) The privacy and personal data of individuals in the EU 11. "FCPA" (Foreign Corrupt Practices Act) is a US law that prohibits: A) US citizens from buying foreign cars B) Bribery of foreign officials by US companies and individuals C) Selling products to competitors D) Working more than 40 hours a week Correct Answer: B) Bribery of foreign officials by US companies and individuals 12. "Anti-Dumping Duties" are taxes imposed on: A) Products that are literally dumped in the ocean B) Imported goods that are priced below their fair market value to protect local industries C) High-quality luxury products D) Products that have no packaging Correct Answer: B) Imported goods that are priced below their fair market value to protect local industries 13. "WIPO" stands for: A) World Intellectual Property Organization B) Western International Production Office C) Weekly International Price Observer D) World Investment and Profit Organization Correct Answer: A) World Intellectual Property Organization 14. A "Trademark" is intended to: A) Protect the secret recipe of a product B) Identify the source of goods and services and distinguish them from others (brand protection) C) Prevent others from writing a similar book D) Protect a new invention for 20 years Correct Answer: B) Identify the source of goods and services and distinguish them from others (brand protection) 15. "TRIPS Agreement" is an international agreement administered by the WTO that sets: A) Minimum standards for the regulation of intellectual property B) Limits on international travel C) Rules for the weight of suitcases D) Standards for the quality of food Correct Answer: A) Minimum standards for the regulation of intellectual property 16. "Letters of Credit" (L/C) are used in international trade to: A) Send thank-you notes to customers B) Provide a payment guarantee from a bank to the seller upon presentation of specific documents C) Write a letter to the customs office D) Prove that a company has a physical office Correct Answer: B) Provide a payment guarantee from a bank to the seller upon presentation of specific documents 17. "Bill of Lading" is a document that acts as: A) An invoice for services B) A receipt for cargo, a contract of carriage, and a document of title C) A map for the ship's captain D) A list of employees on a ship Correct Answer: B) A receipt for cargo, a contract of carriage, and a document of title 18. "Incoterms" (e.g., FOB, CIF) are published by: A) The United Nations B) The International Chamber of Commerce (ICC) C) The US Department of State D) Google Correct Answer: B) The International Chamber of Commerce (ICC)