Solved by verified expert :76. In the event that a discrepancy is
found in the documents presented under a letter of credit, the bank may require
a waiver or:
a. Resubmit the draft.
b.
Void the transaction.
c.
Refuse delivery.
d.
Refuse to pay against the documents.
77. Under the UCP, the description of the
goods in the commercial invoice must correspond with the description in the
letter of credit. In all other documents, the goods may be described:
a.
In perfect conformance with the letter of credit.
b. In general terms not
inconsistent with the description of the goods in the letter of credit.
c.
In specific terms as requested by the buyer.
d.
In general terms consistent with the contract for the sale of goods.
78. If a U.S. exporter is concerned about
political and economic stability in the buyer’s country, the exporter should
request which one of the following payment terms?
a.
Cash against documents.
b.
Irrevocable letter of credit.
c. Confirmed letter of credit.
d.
Open account terms.
79. The buyer in the letter of credit is
called the ____, and the seller is called the ____.
a. Account party, beneficiary.
b.
Beneficiary, account party.
c.
Exporter, importer.
d.
Buyer, seller.
80. Assume that DownPillow sells pillows to
a Japanese buyer and forwards documents and a draft for acceptance. Assume also
that DownPillow discounts the trade acceptance at a U.S. bank, which then
discounts the instrument in the credit markets. If the pillows turn out to be
moldy and worthless, which one of the following statement(s) is (are) true?
a.
The Japanese buyer does not have to pay because the pillows are damaged.
b.
The U.S. bank must reimburse whoever bought the instrument and can bring a
lawsuit for
payment against DownPillow.
c. The Japanese buyer must still
honor and pay the acceptance upon presentation.
d.
“a” and “b”.
81. A holder of a negotiable instrument
cannot claim to be a holder in due course if (s)he:
a.
Takes the instrument free from disputes between the drawer and drawee.
b. Knows the intstrument is
overdue.
c.
Unknowingly holds an instrument with a forged signature.
d.
Gives value for the instruments.
82. In Star-Kist
Foods, Inc. v. United States, Star-Kist complained that the president’s
authority under the Reciprocal Trade Agreement Act of 1934 was
unconstitutional. Star-Kist sought to challenge a presidentially lowered tariff
on canned tuna imported from Iceland.
a.
Star-Kist won because the congressional delegation of authority was vague and
indefinite as to
the policies or objectives sought.
b.
Star-Kist won because of the lack of a standard or “intelligible principle”
upon which
presidential action could be judged.
c.
Star-Kist lost because they lacked “standing” to protest the president’s
action; only Congress
could object by means on a concurrent
resolution.
d.
Star-Kist lost because the
court determined that the 1934 statute had provided a sufficiently
discernible standard to guide presidential
action.
83. The president derives the power and
authority to deal with foreign commerce and international trade from all of the
following except:
a.
Powers delegated to the president by Congress.
b. The president’s authority as
commander-in-chief.
c.
The president’s inherent executive power.
d.
The president’s judicial power delegated by the courts.
84. Under the Constitution, a treaty is
considered:
a.
Non-binding and discretionary.
b.
Unenforceable.
c. Law of the land.
d.
None of the above.
85. In order for an executive agreement of
the president concerning foreign affairs to be valid:
I. A court must find that it is based
on the president’s inherent powers or
authority
granted by Congress.
II.
It must be based upon an
express power granted by the U.S. Constitution.
a.
I. only.
b.
II. Only.
c. Both I and II.
d.
Neither I nor II.
86. If the president is negotiating a trade
agreement with Germany over reducing tariffs on telephone switching equipment
and he wants to make sure there will be no problems with its passage, he can:
a.
Call the Speaker of the House and President Pro Tem of the Senate to get their
assurances
of passage.
b.
Declare through Presidential Proclamation that it will be law.
c.
Seek fast-track approval
with Congress prior to the trade agreement being concluded.
d.
None of the above.
87. Xerox Corp. manufactured parts for copy
machines in the U.S. that were shipped to Mexico for assembly. The copiers were
designed to be sold to Latin America and did not operate on U.S. electric
current. After assembly, the copiers were kept in U.S. customs warehouses in
Houston pending sale to Latin America. These goods were free of import duty by
federal law. The city of Houston, Texas, assessed these copiers with a local
property tax. Xerox sued to have this tax declared unconstitutional. The court
should decide: I. That Xerox must pay all this tax
because state/local governments have taxing
powers
just like the federal government.
II. That Xerox must pay only one-half of
the tax to avoid multiple taxation.
III. That this Houston law is preempted by
federal law.
a.
I only.
b.
II only.
c.
III only.
d.
Both I and III.
88. A state’s authority to tax a business
engaged in foreign commerce is determined by:
a.
The negative implication doctrine.
b. The multiple taxation
doctrine.
c.
The Monroe Doctrine.
d.
Both “a” and “b”.
89. The U.S. Trade Representative is:
a.
A cabinet level position reporting directly to the president that carries on
trade negotiations for
the U.S.
b.
Required to administer the Bureau of Customs and Border Protection.
c. Both of the above.
d.
None of the above.
90. In Dole
v. Carter, the court considered Senator Robert Dole’s complaint that the
president be enjoined from returning the Hungarian coronation regalia to
Hungary. The court:
a.
Enjoined the president from ordering the return on the crown until a formal
treaty could be
ratified by Congress.
b.
Determined that under existing protocols with Hungary, the crown could not be
returned until
the year 2000.
c.
Considered the executive agreement to be in accord with an earlier treaty
between Hungary and
the U.S.
d.
Considered the president’s
agreement to return the crown as validly done pursuant to the
president’s inherent constitutional
authority.
91. Treaties are negotiated by _____, with
the advice and consent of _____.
a.
The executive branch; Congress.
b.
Congress; the President.
c. The executive branch; the
Senate.
d.
None of the above.
92. Which one of the following may not be a
reliable criterion for determining whether imported and domestic goods are
“like products”?
a.
Consumers’ tastes and habits.
b.
The product’s end uses.
c. The product’s uniform tariff
classification.
d.
None of the above are reliable.
93. Tariffs serve all of the following
purposes except:
a.
Collection of revenue.
b. Enhancement of flow of
commerce.
c.
Regulation of import competition.
d.
Protection of the national defense.
94. Which one of the following is not true
regarding WTO dispute settlement procedures?
a.
A complaining party can request consultations to seek a solution.
b. Even if a solution is not
reached, the WTO panel has no authority to authorize trade sanctions.
c.
Other member nations with a “substantial interest” in the case may make written
submissions
and oral arguments before the WTO panel.
d.
An appellate body will hear appeals from a WTO panel case.
95. When a nation that belongs to the WTO
imposes a tariff or quota on imported products, it is supposed to do so within guidelines
established by WTO/GATT. If it does not do so within the guidelines:
a.
The offending nation may immediately suffer trade war treatment from other WTO
members.
b.
The offending nation may be subject to a proceeding pursuant to the WTO’s
Dispute
Settlement Understanding.
c.
The offending nation may be sued in the World Court for breaching the guideline
contract.
c. None of the above.
96. According to WTO/GATT, quotas are
considered acceptable devices for regulating trade only where:
a.
A nation is imposing a
temporary safeguard to protect its balance of payments.
b.
They are enacted into law by a nation’s legislative body.
c.
Nations are engaged in trade war.
d.
A nation has first petitioned the United Nations for permission to do so.
97. All of the following are basic
principles of WTO/GATT except:
a.
Commitment to normal trade relations.
b.
Elimination of import quotas.
c.
Non-reciprocal tariff
increase.
d.
Non-discrimination against imported goods.
98. Countries A, B, and C belong to the
WTO. Countries X and Y do not. A has a 7% tariff on televisions from B. C, X,
and Y also export televisions to A. Under the unconditional most-favored-nation
trade of WTO/GATT:
a.
Countries C, X, and Y are entitled to a 7% tariff on televisions.
b.
Countries X and Y are entitled to a 7% tariff on televisions, but C is not.
c.
Country C must petition A under WTO/GATT to get a 7% tariff on televisions.
d. Country C gets an automatic
7% tariff rate on televisions, but X and Y do not.
99. Countries A and B both produce coffee.
Both countries belong to WTO/GATT. Country A imports coffee from B. Once B’s
coffee enters A’s stream of commerce, under the national treatment provisions
of WTO/GATT:
a.
Country A cannot subject
B’s coffee to higher internal taxes or charges than are imposed on A’s
domestic coffee.
b.
Country A may charge higher internal taxes and charges on B’s coffee than it
does on domestic
coffee.
c.
Country A cannot subject B’s coffee to any internal taxes or charges, even
though it does so to
domestic coffee, because B’s coffee was
already subjected to a tariff upon importation.
d.
None of the above is correct.
100. Which one of the following is not an
example of a commonly use trade barrier?
a. A convention on imported
children’s toys.
b.
A tariff on imported oil.
c.
A tax on imported clothing.
d.
A national industrial standard that drives up the cost of imported televisions.
