International Business Law 6th Edition August Test Bank

TEST BANK




TEST BANK

,International Business Law 6th Edition August Test Bank




Chapter 2: State Responsibility and Environmental Regulation


True or False Questions


1. According to the doctrine of imputability, the state is responsible for the acts of private
persons and acts of officials of other states or international organizations.

Answer: False
Diff: 1
Topic: State Responsibility
Skill: Legal Concepts

2. States are not responsible for acts done by officials contrary to express orders.

Answer: False
Diff: 1
Topic: State Responsibility
Skill: Legal Concepts

3. The doctrine of imputability does not make the state liable for an act of terrorism
committed by its nationals against foreigners.

Answer: True
Diff: 1
Topic: State Responsibility
Skill: Legal Concepts

4. Any act of expropriation of foreign property is considered illegal under international
law.

Answer: False
Diff: 2
Topic: Standard of Care
Skill: Legal Concepts

5. An error of a national court which does not produce a manifest injustice is not
considered a denial of justice.

Answer: True
Diff: 1
Topic: Standard of Care
Skill: Legal Concepts

6. Private persons cannot stand as plaintiffs in the International Court of Justice.




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,Answer: True
Diff: 1
Topic: Objections
Skill: Legal Concepts

7. According to the Sinecure Clause, an investor who seeks to establish a business
operation in a foreign country should agree, in advance, that he, she, or it will not ask for
its home state to intervene in any dispute with the host state.

Answer: False
Diff: 2
Topic: Objections
Skill: Legal Concepts

8. Before an individual or business firm can seek the help of its home state in supporting
a complaint of mistreatment by a foreign state, the individual or firm must exhaust all of
the local remedies available to it within the foreign state.

Answer: True
Diff: 2
Topic: Objections
Skill: Legal Concepts

9. The objection that may be made to an international tribunal’s exercise of jurisdiction
when there is no real and bona fide relationship between the state bringing the suit and
the person on whose behalf the suit is brought is referred to as “lack of standing.”

Answer: False
Diff: 1
Topic: Objections
Skill: Legal Concepts

10. If the injury is done directly to a state, then the objection of failure to exhaust all
remedies cannot be raised.

Answer: True
Diff: 2
Topic: Objections
Skill: Legal Concepts

11. The requirement for a person to exhaust remedies cannot be waived by treaties.

Answer: False
Diff: 2
Topic: Objections

, Skill: Legal Concepts

12. The Overseas Private Investment Corporation (OPIC) only operates as an insuring
agency for companies investing in less developed countries.

Answer: False
Diff: 1
Topic: Insurance
Skill: Legal Concepts

13. The Overseas Private Investment Corporation (OPIC) is an independent government
agency.

Answer: True
Diff: 1
Topic: Insurance
Skill: Legal Concepts

14. The OPIC does not insure against minor diminishment in the value of an investment.

Answer: True
Diff: 1
Topic: Insurance
Skill: Legal Concepts

15. The OPIC’s coverage for currency inconvertibility only insures an existing legal right
to convert.

Answer: True
Diff: 1
Topic: Insurance
Skill: Legal Concepts

16. The OPIC cannot obtain subrogation rights against the host government from the
insured.

Answer: False
Diff: 1
Topic: Insurance
Skill: Legal Concepts

17. The OPIC limits its exposure in any one country to no more than 10 percent of its
total risk.

Answer: True
Diff: 1