Legal Aspects of International Business, 4th Edition
Test Bank
Chapter 1:
Chapter 1: International Law and International Organizations
True or False
1. Signing a treaty or a convention necessarily constrains a domestic government’s freedom to
change policy in its own country. T (pp. 6-8)
2. Many of the world’s largest corporations refer the determination of their international
commercial disputes to the International Court of Justice in The Hague, often referred to as the
World Court. F (p. 9)
3. The United Nations is the one global law-making and enforcement body in the world; it has the
authority to make rules that must be obeyed by the world’s trading nations. F (p. 15)
4. A necessary corollary to the rise of supra-national organizations is some weakening of the power
of the members’ national governments. T (p. 5)
5. International treaties usually have no fixed termination date, but continue for an indefinite
period of time. T (p. 11)
6. In Canada, no legislative concurrence is required prior to federal government ratification of a
treaty; however, integration of treaty obligations into Canadian law generally requires domestic
legislative approval. T (pp. 13-14)
7. In the US, Congress can modify or repeal treaties by subsequent legislative action, even if this
modification amounts to a violation of the treaty. T (p. 14)
8. The mandate of UNCITRAL (the UN Commission on International Trade Law) is to bring
about the progressive harmonization and unification of the law of international trade. T (p. 17)
9. The Bretton Woods Institutions, established after World War II, were the World Bank, the
General Agreement on Tariffs and Trade (GATT), and the International Chamber of
Commerce. F (pp. 18-19)
10. Once signed, most treaties will require a signing country to pass implementing legislation before
that signatory country can ratify the treaty. T (p. 12)
Multiple Choice
1. Which of the following statements is correct? (pp. 12–13)
a. A treaty does not usually come into force until it is ratified.
b. The obligations contained in a treaty normally apply only to countries that have ratified
the treaty.
c. Once a country has signed a treaty it is legally obliged to adhere to its provisions.
d. All of the above are correct.
e. Only (a) and (b) are correct.
Test Bank
Chapter 1:
Chapter 1: International Law and International Organizations
True or False
1. Signing a treaty or a convention necessarily constrains a domestic government’s freedom to
change policy in its own country. T (pp. 6-8)
2. Many of the world’s largest corporations refer the determination of their international
commercial disputes to the International Court of Justice in The Hague, often referred to as the
World Court. F (p. 9)
3. The United Nations is the one global law-making and enforcement body in the world; it has the
authority to make rules that must be obeyed by the world’s trading nations. F (p. 15)
4. A necessary corollary to the rise of supra-national organizations is some weakening of the power
of the members’ national governments. T (p. 5)
5. International treaties usually have no fixed termination date, but continue for an indefinite
period of time. T (p. 11)
6. In Canada, no legislative concurrence is required prior to federal government ratification of a
treaty; however, integration of treaty obligations into Canadian law generally requires domestic
legislative approval. T (pp. 13-14)
7. In the US, Congress can modify or repeal treaties by subsequent legislative action, even if this
modification amounts to a violation of the treaty. T (p. 14)
8. The mandate of UNCITRAL (the UN Commission on International Trade Law) is to bring
about the progressive harmonization and unification of the law of international trade. T (p. 17)
9. The Bretton Woods Institutions, established after World War II, were the World Bank, the
General Agreement on Tariffs and Trade (GATT), and the International Chamber of
Commerce. F (pp. 18-19)
10. Once signed, most treaties will require a signing country to pass implementing legislation before
that signatory country can ratify the treaty. T (p. 12)
Multiple Choice
1. Which of the following statements is correct? (pp. 12–13)
a. A treaty does not usually come into force until it is ratified.
b. The obligations contained in a treaty normally apply only to countries that have ratified
the treaty.
c. Once a country has signed a treaty it is legally obliged to adhere to its provisions.
d. All of the above are correct.
e. Only (a) and (b) are correct.
