INTB 3355 Module 6 Homework
Questions With Correct Answers
/.To what degree a country's legal system is based on the rule of law matters little in
international business. - Answer-✅False; The rule of law encourages international
business and foreign investors because relevant interests will be protected.
/.The source of international law is seldom the United Nations or the World Trade
Organization, but rather individual nation's laws. - Answer-✅False; Sources of
international law include the United Nations and the World Trade Organization, which
help foster treaties between nations.
/.Customary international law often draws on practices that are centuries old. - Answer-
✅True; Customary international law is found in practices that nations respect, such as
the immunity of foreign heads of state. It derives from customs and usage over
centuries.
/.The U.S. enforcement of Equal Employment Opportunity Commission (EEOC) law in
U.S. companies operating abroad is good practice, but not an example of
extraterritoriality. - Answer-✅False; This is not the case: Americans working for
American companies abroad are protected by U.S. EEOC regulations. This may cause
problems in countries where there are social mores that are not harmonious with those
of the United States, such as men and women working together or closed hiring
systems.
/.A choice-of-law clause specifies which law will govern in case of a dispute between
two organizations or companies. - Answer-✅True; Without a choice-of-law clause (or
choice-of-forum clause), jurisdiction can be a complex matter to decide.
/.Worldwide courts rely on the power of the UN to enforce decrees. - Answer-✅False;
Enforcing contracts across international borders is often complicated because there is
no enforcing agency.
/.The UN Convention on the International Sale of Goods (CISG) has established legal
rules and outlined the rights and obligations of the buyer and seller. - Answer-✅True; If
the traders are in countries that have ratified CISG, then it automatically applies unless
they opt out.
Questions With Correct Answers
/.To what degree a country's legal system is based on the rule of law matters little in
international business. - Answer-✅False; The rule of law encourages international
business and foreign investors because relevant interests will be protected.
/.The source of international law is seldom the United Nations or the World Trade
Organization, but rather individual nation's laws. - Answer-✅False; Sources of
international law include the United Nations and the World Trade Organization, which
help foster treaties between nations.
/.Customary international law often draws on practices that are centuries old. - Answer-
✅True; Customary international law is found in practices that nations respect, such as
the immunity of foreign heads of state. It derives from customs and usage over
centuries.
/.The U.S. enforcement of Equal Employment Opportunity Commission (EEOC) law in
U.S. companies operating abroad is good practice, but not an example of
extraterritoriality. - Answer-✅False; This is not the case: Americans working for
American companies abroad are protected by U.S. EEOC regulations. This may cause
problems in countries where there are social mores that are not harmonious with those
of the United States, such as men and women working together or closed hiring
systems.
/.A choice-of-law clause specifies which law will govern in case of a dispute between
two organizations or companies. - Answer-✅True; Without a choice-of-law clause (or
choice-of-forum clause), jurisdiction can be a complex matter to decide.
/.Worldwide courts rely on the power of the UN to enforce decrees. - Answer-✅False;
Enforcing contracts across international borders is often complicated because there is
no enforcing agency.
/.The UN Convention on the International Sale of Goods (CISG) has established legal
rules and outlined the rights and obligations of the buyer and seller. - Answer-✅True; If
the traders are in countries that have ratified CISG, then it automatically applies unless
they opt out.
