International Business Law – August, Mayer, Bixby – Test Bank – Chapter 1 Introduction to International and Comparative Law – Questions & Answers

True or False Questions

1. Equity is the practice between states of treating each other with goodwill and civility.

Answer: False

Diff: 1

Topic: What Is International Law?

Skill: Legal Concepts

2. A formal binding agreement between two states is called a multilateral treaty.

Answer: False

Diff: 1

Topic: The Making of International Law

Skill: Legal Concepts

3. Conventions are legally binding agreements between states sponsored by international organizations.

Answer: True

Diff: 1

Topic: Sources of International Law

Skill: Legal Concepts

4. The term “lex mercatoria” refers to theprinciples of law common to the world’s legal systems.

Answer: False

Diff: 1

Topic: Sources of International Law

Skill: Legal Concepts

5. Jus cogens is a peremptory norm of general international law, recognized by the international community of states as a norm from which no derogation is permitted.

Answer: True

Diff: 1

Topic: Sources of International Law

Skill: Legal Concepts

6. The doctrine of incorporation holds that customary international law is not applicable until clearly adopted by legislative action, judicial decision, or established local usage.

Answer: False

Diff: 1

Topic: The Scope of International Law in Actual Practice

Skill: Legal Concepts

7. Executive agreements are made according to the Constitution’s provisions.

Answer: False

Diff: 1

Topic: The Scope of International Law in Actual Practice

Skill: Legal Concepts

8. Recognitioncomes about by a unilateral declaration, and it can be either explicit (express) or implicit (tacit).

Answer: True

Diff: 1

Topic: International Persons

Skill: Legal Concepts

9. The declaratory doctrine holds that the legal existence of a government happens automatically by operation of law whenever a government is capable of controlling a territory and its people.

Answer: True

Diff: 1

Topic: International Persons

Skill: Legal Concepts

10. Servitude is the right of a government to exclusively exercise its powers within a particular territory.

Answer: False

Diff: 1

Topic: International Persons

Skill: Legal Concepts

11. A treaty concerned with rights over territory, such as boundaries and servitudes, is called a dispositive treaty.

Answer: True

Diff: 1

Topic: International Persons

Skill: Legal Concepts

12. If territory from one state shifts to another, the law of state succession applies the Merger Rule.

Answer: False

Diff: 1

Topic: International Persons

Skill: Legal Concepts

13. The private property rights of individuals lapse because of a change in government.

Answer: False

Diff: 2

Topic: International Persons

Skill: Legal Concepts

14. A charter is a document outlining the principles, functions, and organization of a juridical entity.

Answer: True

Diff: 1

Topic: International Persons

Skill: Legal Concepts

15. The United Nations is a nongovernmental organization.

Answer: False

Diff: 1

Topic: International Persons

Skill: Legal Concepts

16. The General Assembly is an organ of the United Nations.

Answer: True

Diff: 1

Topic: International Persons

Skill: Legal Concepts

17. The Security Council has 15 permanent member states.

Answer: False

Diff: 1

Topic: International Persons

Skill: Legal Concepts

18. European Union law within its scope of applicability is superior to the laws of the member states.

Answer: True

Diff: 1

Topic: International Persons

Skill: Legal Concepts

19. The European Commission is the administrative and executive arm of the EU.

Answer: True

Diff: 1

Topic: International Persons

Skill: Legal Concepts

20. Free trade areas are intergovernmental organizations.

Answer: True

Diff: 1

Topic: International Persons

Skill: Legal Concepts

21. All nongovernmental organizations are nonprofit organizations.

Answer: False

Diff: 1

Topic: International Persons

Skill: Legal Concepts

22. Transnational corporations are nonprofit organizations.

Answer: False

Diff: 1

Topic: International Persons

Skill: Legal Concepts

23. According to the law of state responsibility, the defendant can be from any state.

Answer: False

Diff: 2

Topic: The Rights of Individuals Under International Law

Skill: Legal Concepts

24. Common law is the legal system of England and countries that were once English colonies.

Answer: True

Diff: 1

Topic: Comparison of Municipal Legal Systems

Skill: Legal Concepts

25. Islamic law is the principal source of law in Saudi Arabia.

Answer: True

Diff: 1

Topic: Comparison of Municipal Legal Systems

Skill: Legal Concepts

Multiple Choice Questions

26. The practice or courtesy existing between states of treating each other with goodwill and civility is called ________.

A. comity

B. usus                             

C. jus commune

D. jus cogens

Answer: A

Diff: 1

Topic: What Is International Law?

Skill: Legal Concepts

27. A ________ is a legally binding agreement between two or more states.

A. convention

B. comity

C. treaty

D. estoppel

Answer: C

Diff: 1

Topic: Sources of International Law

Skill: Legal Concepts

28. ________ are legally binding agreements between states sponsored by international organizations.

A. Conventions

B. Doctrines

C. Treaties

D. Estoppels

Answer: A

Diff: 1

Topic: Sources of International Law

Skill: Legal Concepts

29. ________ is a peremptory norm of general international law, recognized by the international community of states as a norm from which no derogation is permitted.

A. Public law

B. Jus commune

C. Jus cogens

D. Civil law

Answer: C

Diff: 1

Topic: Sources of International Law

Skill: Legal Concepts

30. Customary international law is part of domestic law to the extent that it is not inconsistent. This is called the ________.

A. constitutive doctrine

B. declaratory doctrine

C. doctrine of transformation

D. doctrine of incorporation

Answer: D

Diff: 1

Topic: The Scope of International Law in Actual Practice   

Skill: Legal Concepts

31. Customary international law is applicable domestically only after it is adopted by legislation, court decision, or local usage. This is called the ________.

A. constitutive doctrine

B. declaratory doctrine

C. doctrine of transformation

D. doctrine of incorporation

Answer: C

Diff: 1

Topic: The Scope of International Law in Actual Practice

Skill: Legal Concepts

32. Which of the following best describes a self-executing treaty?

A. It is a treaty that requires state parties to enact enabling legislation before it becomes effective domestically.

B. It is a treaty containing a term that says that it is directly effective within the signatory states upon ratification.

C. It is a treaty adopted according to the constitutional provisions of the ratifying state.

D. It is a treaty or international agreement entered into by a state’s executive without following the state’s constitutionally required ratification procedure.

Answer: B

Diff: 2

Topic: The Scope of International Law in Actual Practice

Skill: Legal Concepts

33.  A treaty that requires state parties to enact enabling legislation before it becomes effective domestically is known as a ________ treaty.

A. bilateral

B. dispositive

C. constitutional

D. non-self-executing

Answer: D

Diff: 1

Topic: The Scope of International Law in Actual Practice

Skill: Legal Concepts

34. Which of the following best describes an executive agreement?

A. It is a treaty or international agreement entered into by a state’s executive without following the state’s constitutionally required ratification procedure.

B. It is a treaty adopted according to the constitutional provisions of the ratifying state.

C. It gives a person the right to use another person’s property.

D. It is a document outlining the principles, functions, and organization of a juridical entity.

Answer: A

Diff: 2

Topic: The Scope of International Law in Actual Practice

Skill: Legal Concepts

35. The ________ holds that the legal existence of a state or government happens automatically by operation of law.

A. doctrine of transformation

B. declaratory doctrine

C. constitutive doctrine

D. doctrine of incorporation

Answer: B

Diff: 1

Topic: International Persons

Skill: Legal Concepts

36. The ________ holds that the legal existence of a state or government is dependent on recognition by other states.

A. doctrine of transformation

B. declaratory doctrine

C. constitutive doctrine

D. doctrine of incorporation

Answer: C

Diff: 1

Topic: International Persons

Skill: Legal Concepts

37. Which of the following terms refers to a right to the use of another’s property?

A. usus

B. charter

C. servitude

D. comity

Answer: C

Diff: 1

Topic: International Persons

Skill: Legal Concepts

38. ________ is a legal rule that one cannot make an allegation or denial of fact that is contrary to one’s previous actions or words.

A. Estoppel

B. Jus cogens

C. Servitude

D. Charter

Answer: A

Diff: 1

Topic: International Persons

Skill: Legal Concepts

39. A treaty concerned with rights over territory, such as boundaries and servitudes is called the ________.

A. executive agreement

B. constitutional treaty

C. self-executing treaty

D. dispositive treaty

Answer: D

Diff: 1

Topic: International Persons

Skill: Legal Concepts

40. The ________ holds that a new state coming into existence through decolonization is under no obligation to succeed to the treaties of its former colonial power.

A. doctrine of incorporation

B. declaratory doctrine

C. Clean slate doctrine

D. constitutive doctrine

Answer: C

Diff: 1

Topic: International Persons

Skill: Legal Concepts

41. A(n) ________ is a document outlining the principles, functions, and organization of a juridical entity.

A. charter

B. convention

C. self-executing treaty

D. dispositive treaty

Answer: A

Diff: 1

Topic: International Persons

Skill: Legal Concepts

42. The United Nations is a type of ________.

A. transnational corporation

B. nonprofit non-governmental organization

C. intergovernmental organization

D. multinational enterprise

Answer: C

Diff: 2

Topic: International Persons

Skill: Legal Concepts

43. Which of the following is a permanent member of the Security Council?

A. the United States

B. India

C. Brazil

D. Germany

Answer: A

Diff: 1

Topic: International Persons

Skill: Legal Concepts

44. The ________ is the main decision-making body of the European Union.

A. European Economic and Social Committee

B. European Commission

C. European Parliament        

D. Council of the European Union

Answer: D

Diff: 1

Topic: International Persons

Skill: Legal Concepts

45. Which of the following is a function of the Council of the European Union?

A. It is responsible for overseeing the implementation of the treaties that establish the EU.

B. It coordinates the economic policies of the member states.

C. It acts as the principal initiator of overall policy for the EU.

D. It represents the EU internationally.

Answer: B

Diff: 2

Topic: International Persons

Skill: Legal Concepts

46. Which of the following is a function of the European Council?

A. It is responsible for overseeing the implementation of the treaties that establish the EU.

B. It coordinates the economic policies of the member states.

C. It acts as the principal initiator of overall policy for the EU.

D. It represents the EU internationally.

Answer: C

Diff: 2

Topic: International Persons

Skill: Legal Concepts

47. Which of the following is a function of the European Commission?

A. It acts as the principal initiator of overall policy for the EU.

B. It drafts legislation for submission to the Council and the Parliament.

C. It determines the EU’s annual budget in conjunction with the Council of the EU.

D. It coordinates the economic policies of the member states.         

Answer: B

Diff: 2

Topic: International Persons

Skill: Legal Concepts

48. The ________ is responsible for carrying out the EU’s monetary policy.

A. European Commission

B. European Court of Auditors         

C. European Central Bank

D. European Economic and Social Committee

Answer: C

Diff: 1

Topic: International Persons

Skill: Legal Concepts

49. A group of states that have reduced or eliminated trade barriers among themselves and have established a common external tariff is called ________.

A. the United Nations System

B. a free trade area

C. an economic consultative association

D. a customs union

Answer: D

Diff: 1

Topic: International Persons

Skill: Legal Concepts

50. A group of states that have reduced or eliminated trade barriers among themselves but maintain their individual tariffs in dealing with other states is called ________.

A. a customs union

B. a free trade area

C. the United Nations System

D. an economic consultative association

Answer: B

Diff: 1

Topic: International Persons

Skill: Legal Concepts

51. Which of the following best describes an economic consultative association?

A. It is a group of states that have reduced or eliminated trade barriers among themselves but maintain their individual tariffs in dealing with other states.

B. It is a group of states that exchanges information, coordinates economic policy, and promotes trade cooperation.

C. It is a business firm operating branches, subsidiaries, or joint ventures in two or more states.

D. It is a group of states that have reduced or eliminated trade barriers among themselves and have established a common external tariff.

Answer: B

Diff: 1

Topic: International Persons

Skill: Legal Concepts

52. Greenpeace and Amnesty International are examples of ________.

A. nongovernmental organizations

B. economic consultative associations

C. general intergovernmental organizations

D. special intergovernmental organizations

Answer: A

Diff: 1

Topic: International Persons

Skill: Legal Concepts

53. A(n) ________ is a business firm operating branches, subsidiaries, or joint ventures in two or more states.

A. multinational enterprise

B. economic consultative association

C. for-profit NGO

D. intergovernmental organization

Answer: A

Diff: 1

Topic: International Persons

Skill: Legal Concepts

54. Which of the following characterizes arbitration?

A. It is the liability of a state for the injuries that it causes to foreign persons.

B. It is the process by which parties to a dispute submit their differences to the judgment of an impartial third person or group selected by mutual consent.

C. It is the basic rights intended to protect all people from cruel and inhumane treatment, threats to their lives, and persecution.

D. It is justice applied in circumstances not covered by rules of law.

Answer: B

Diff: 3

Topic: International Persons

Skill: Legal Concepts

55. Which of the following is true of international human rights law?

A. Individuals can claim any loss of property or personal injury.

B. Individuals have the right to assert claim against the state of their nationality.

C. The claimant is the state of which the injured individual is a national.

D. The defendant is always a foreign state.

Answer: B

Diff: 3

Topic: The Rights of Individuals Under International Law

Skill: Legal Concepts

56. Which among the following is commonly called the civil law?

A. Shari’a

B. common law

C. public law

D. the Romano-Germanic legal system

Answer: D

Diff: 1

Topic: Comparison of Municipal Legal Systems

Skill: Legal Concepts

57. The common law of Europe is called the ________.

A. lex mercatoria

B. jus commune

C. jus cogens

D. Shari’a

Answer: B

Diff: 2

Topic: Comparison of Municipal Legal Systems

Skill: Legal Concepts

58. The common commercial rules and procedures used throughout Europe in the Renaissance are known as the ________.

A. Shari’a

B. jus cogens

C. jus commune

D. lex mercatoria

Answer: D

Diff: 1

Topic: Comparison of Municipal Legal Systems

Skill: Legal Concepts

59. The ________ was promulgated in 1804 by Napoléon.

A. jus commune

B. German Civil Code

C. French Civil Code

D. common law

Answer: C

Diff: 1

Topic: Comparison of Municipal Legal Systems

Skill: Legal Concepts

60. The ________ is the law code promulgated in 1896 that is based primarily on the Corpus Juris Civilis and is characterized by its detailed structure and its technical precision.

A. comparative law

B. German Civil Code

C. French Civil Code

D. common law

Answer: B

Diff: 1

Topic: Comparison of Municipal Legal Systems

Skill: Legal Concepts

61. Constitutional and administrative law is called the ________.

A. common law

B. public law

C. civil law

D. Shari’a

Answer: B

Diff: 1

Topic: Comparison of Municipal Legal Systems

Skill: Legal Concepts

62. The ________ is the legal system of England and countries that were once English colonies.

A. Shari’a

B. public law

C. common law

D. civil law

Answer: C

Diff: 2

Topic: Comparison of Municipal Legal Systems

Skill: Legal Concepts

63. A doctrine which states that all persons, including the sovereign, are subordinate to the rule of law is called the ________.

A. Clean slate doctrine

B. Estrada doctrine

C. supremacy of the law

D. state responsibility

Answer: C

Diff: 2

Topic: Comparison of Municipal Legal Systems

Skill: Legal Concepts

64. ________ is the law and court with jurisdiction over maritime affairs in general.

A. Equity

B. Public law

C. Common law

D. Admiralty

Answer: D

Diff: 1

Topic: Comparison of Municipal Legal Systems

Skill: Legal Concepts

65. ________ is based on principles found in the Koran and related writings.

A. Jus commune

B. Corpus Juris Civilis

C. Shari’a

D. Lex mercatoria

Answer: C

Diff: 1

Topic: Comparison of Municipal Legal Systems

Skill: Legal Concepts

Essay Questions

66. Distinguish between treaties and conventions.

Answer: In international law the equivalents of legislation are treaties and conventions. Treaties are legally binding agreements between two or more states. Conventions are legally binding agreements between states sponsored by international organizations, such as the United Nations. Both are binding upon states because of a shared sense of commitment and because one state fears that if it does not respect its promises, other states will not respect their promises.

Diff: 3

Topic: Sources of International Law

Skill: Legal Concepts

67. What are the three different types of states?

Answer: The three different types of states are independent state, dependent state, and inchoate state. Independent states are free from the political control of other states and free to enter into agreements with other international persons. Dependent states have formally surrendered some aspect of their political and governmental functions to another state. Inchoate states are the ones that have begun but not completed. They are imperfectly formed or developed.

Diff: 3

Topic: International Persons

Skill: Legal Concepts

68. What is the difference between the Merger Rule and the Moving Boundaries Rule?

Answer: Merger Rule is the legal rule that the treaties in effect in a former state remain in effect in its territory when it becomes part of a new state. If territory from one state shifts to another, the law of state succession applies the Moving Boundaries Rule. This holds that the treaties of the absorbing state displace the treaties of the receding state in the territory where sovereignty has changed.

Diff: 3

Topic: International Persons

Skill: Legal Concepts

69. Enlist the organs of the United Nations.

Answer: The organs of the United Nations are the General Assembly, the Security Council, the Secretariat, the International Court of Justice, the Trusteeship Council, and the Economic and Social Council (ECOSOC).

Diff: 1

Topic: International Persons

Skill: Legal Concepts

70. Explain supranational powers.

Answer: Unlike most other intergovernmental organizations, the EU is endowed with supranational powers. That is, EU law within its scope of applicability is superior to the laws of the member states. This “supremacy principle” has two consequences: (1) the member states are required to bring their internal laws into compliance with EU law and (2) EU law is directly effective within the member states.

Diff: 2

Topic: International Persons

Skill: Legal Concepts

71. What are the various functions of the Council of the European Union?

Answer: The Council of the European Union is the main decision-making body of the EU. It exercises co-decision with the European Parliament on a wide array of community issues. Its role is to (1) adopt legislation in conjunction with the Parliament, (2) adopt an annual budget, also in conjunction with Parliament, (3) adopt international agreements, and (4) coordinate the economic policies of the member states.

Diff: 2

Topic: International Persons

Skill: Legal Concepts

72. What are the two types of intergovernmental organizations?

Answer: IGOs can be categorized into two basic groups: (1) general IGOs that have competence in a wide variety of fields, including politics, security, culture, and economics, like the United Nations, and (2) specialized IGOs that limit their activities to a particular field.

Diff: 2

Topic: International Persons

Skill: Legal Concepts

73. Distinguish between customs union and free trade area.

Answer: A group of states that have reduced or eliminated trade barriers among themselves and have established a common external tariff is called the customs union. A group of states that have reduced or eliminated trade barriers among themselves but maintain their individual tariffs in dealing with other states is called the free trade area.

Diff: 2

Topic: International Persons

Skill: Legal Concepts

74. Explain the Romano-Germanic Civil Law System.

Answer: The oldest and most influential legal family is the Romano-Germanic legal system, commonly called the civil law. The civil law dates to 450 b.c., the traditional date when Rome adopted its Twelve Tables. The most significant event in the historical development of the civil law, however, was the compilation and codification of all Roman law under the direction of the Byzantine Emperor Justinian. This code, known as the Corpus Juris Civilis, was compiled between 528 and 534 a.d. It was important because it preserved in written form the ancient legal system.

Diff: 3

Topic: Comparison of Municipal Legal Systems

Skill: Legal Concepts

75. How does the Islamic legal system function?

Answer: The Islamic legal system is known as Shari’a. It is derived from the following sources, in the order of their importance: (1) the Koran, (2) the Sunna or traditional teachings and practices of the Prophet Muhammad (570–632 a.d.), (3) the writings of Islamic scholars who derived rules by analogy from the principles established in the Koran and the Sunna, and (4) the consensus of the legal community. In the tenth century a.d., three centuries after the founding of Islam, the legal community decided that further improvement of the scholars’ analysis of divine law was impossible. They decided at that time to “close the door of ijtihad (independent reasoning),” freezing the evolution of Islamic law. As a consequence, Shari’a judges and scholars may only apply the law as it was set down by the early writers. They may not change, modify, or extend that law.

Diff: 3

Topic: Comparison of Municipal Legal Systems

Skill: Legal Concepts