Chapter 10 Multiple-choice questions

. Which of the following statements on civil law systems would be seen as an advantage by business?

Civil law systems operate in very few countries.

Relevant areas of law are much easier to find than in common law systems.

Relevant areas of law are more difficult to find than in common law systems.

Lawyers act as oral advocates for their clients.

. Which of the following is the legal basis for common law systems?

Court decisions setting precedents.

Statutes.

Precedents and statutes.

Legal codes.

. Muslim law is the dominant legal system in which of the following countries?

Argentina.

Indonesia.

Iran.

South Africa.

. Which of the following could be seen as a breach of contract?

Using dangerous production processes in a Chinese subsidiary that endangered the health and safety of employees.

A Japanese restaurant selling blowfish testicles that poisoned its customers.

Chemical firms setting up an international cartel in the EU.

Supplying computer chips that do not match the agreed product specifications.

. Tort law allows business to:

Pursue foreign suppliers who fail to deliver on the agreed date.

Take counterfeiters of their products to court.

Take grievances through the criminal courts.

Require the State to prosecute suppliers of defective goods.

. How does international law facilitate international trade and investment?

It makes it easier to resolve contract disputes for firms involved in international trade and investment.

It allows business to choose the most favourable national legal system to institute proceedings.

Terms used in international legal conventions are open to differing national interpretations.

The Uniform Commercial Code favours big US multinationals.

. Why might arbitration be an attractive option for settling disputes in international trade and investment cases?

It is more costly than going through national courts.

The decisions of the arbitrator can be widely enforced.

The proceedings are made public.

There is no right of appeal.

. Laws relating to The Single Market Programme allow EU-based companies to:

Move goods and services from any member state to another.

Transfer managers to any member state.

Invest anywhere in the EU.

All of the options given.

. Competition Law in the EU means that firms:

Are free to set up international cartels.

May be refused permission to take over a US competitor.

Cannot be made to repay government financial assistance.

Can cross-subsidise loss-making services from profitable activities.

. The law relating to e-Commerce fits which of the following descriptions:

It comprises a single set of laws.

The law lacks clarity for business.

There is no problem applying contract law to the internet.

The law makes it easy to deal with foreign computer hackers.

Chapter 10 Multiple-choice questions

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