Test Bank for Business Law, 12th Edition by Henry R. Cheeseman

The chapters in this document are displayed in reversed order, with the last chapter appearing first.
This change ensures all chapters are included in the test bank. Chap 1 to 54 included ✅



Business Law, 12e (Cheeseman)
Chapter 54 International and World Trade Law

1) Article I, Section 8, Clause 3 of the U.S. Constitution is the ________ Clause.
A) Privileges and Immunities
B) Intrastate Commerce
C) Foreign Commerce
D) Due Process
Answer: C
Diff: 1
LO: 54.1 Apply the Foreign Commerce Clause and Treaty Clause of the U.S. Constitution.
AACSB: Analytical thinking
Classification: Concept

2) Which of the following constitutional provisions give the federal government the authority to
regulate foreign affairs?
A) the Due Process Clause and Double Jeopardy Clause
B) the Supremacy Clause and the Equal Protection Clause
C) the Free Exercise Clause and the Establishment Clause
D) the Foreign Commerce Clause and the Treaty Clause
Answer: D
Diff: 1
LO: 54.1 Apply the Foreign Commerce Clause and Treaty Clause of the U.S. Constitution.
AACSB: Analytical thinking
Classification: Concept

3) If a state enacts a law that increases its tax on imported automobiles but not on American-
made automobiles, the tax violates the ________ Clause of the U.S. Constitution.
A) Equal Protection
B) Foreign Commerce
C) Supremacy
D) Due Process
Answer: B
Diff: 1
LO: 54.1 Apply the Foreign Commerce Clause and Treaty Clause of the U.S. Constitution.
AACSB: Analytical thinking
Classification: Concept




1
Copyright © 2026

,4) Which of the following is correct regarding the Treaty Clause of the U.S. Constitution?
A) It provides that the president can make treaties of his own accord, autonomously.
B) It provides that the president can enter into treaties with the approval of the two-thirds of the
senate.
C) It provides that the states have exclusive power to regulate internal and foreign affairs.
D) It provides that the federal government has supremacy over the state in matters of
international trade.
Answer: B
Diff: 1
LO: 54.1 Apply the Foreign Commerce Clause and Treaty Clause of the U.S. Constitution.
AACSB: Analytical thinking
Classification: Concept

5) Under the Treaty Clause, the U.S. ________ is seen as the agent of the United States in
dealing with foreign countries.
A) attorney general
B) president
C) Congress
D) Supreme Court
Answer: B
Diff: 1
LO: 54.1 Apply the Foreign Commerce Clause and Treaty Clause of the U.S. Constitution.
AACSB: Analytical thinking
Classification: Concept

6) An agreement between two or more nations that is formally signed by an authorized
representative of each nation and ratified by each nation is known as a(n) ________.
A) statute
B) charter
C) treaty
D) arraignment
Answer: C
Diff: 1
LO: 54.1 Apply the Foreign Commerce Clause and Treaty Clause of the U.S. Constitution.
AACSB: Analytical thinking
Classification: Concept




2
Copyright © 2026

,7) Treaties sponsored by international organizations like the United Nations are known as
________.
A) arraignments
B) abjections
C) amendments
D) conventions
Answer: D
Diff: 1
LO: 54.1 Apply the Foreign Commerce Clause and Treaty Clause of the U.S. Constitution.
AACSB: Analytical thinking
Classification: Concept

8) The U.S. Constitution divides the power to regulate foreign affairs equally between the federal
and state governments.
Answer: FALSE
Diff: 1
LO: 54.1 Apply the Foreign Commerce Clause and Treaty Clause of the U.S. Constitution.
AACSB: Analytical thinking
Classification: Concept

9) Any state or local law that unduly burdens foreign commerce is considered to be in violation
of the Foreign Commerce Clause.
Answer: TRUE
Diff: 1
LO: 54.1 Apply the Foreign Commerce Clause and Treaty Clause of the U.S. Constitution.
AACSB: Analytical thinking
Classification: Concept

10) Under the Treaty Clause of the U.S. Constitution, both the federal government and state
governments can enter into treaties with foreign nations.
Answer: FALSE
Diff: 1
LO: 54.1 Apply the Foreign Commerce Clause and Treaty Clause of the U.S. Constitution.
AACSB: Analytical thinking
Classification: Concept

11) Under the Supremacy Clause of the U.S. Constitution, treaties become part of the "law of the
land," and conflicting state or local law is void.
Answer: TRUE
Diff: 1
LO: 54.1 Apply the Foreign Commerce Clause and Treaty Clause of the U.S. Constitution.
AACSB: Analytical thinking
Classification: Concept




3
Copyright © 2026

, 12) Most treaties are registered with and published by the United Nations.
Answer: TRUE
Diff: 1
LO: 54.1 Apply the Foreign Commerce Clause and Treaty Clause of the U.S. Constitution.
AACSB: Analytical thinking
Classification: Concept

13) Explain the Treaty Clause of the U.S. Constitution.
Answer: A treaty is an agreement or a contract between two or more nations that is formally
signed by an authorized representative and ratified by the supreme power of each nation. Article
II, Section 2, Clause 2 of the U.S. Constitution–the Treaty Clause–states that the president "shall
have power, by and with the advice and consent of the Senate, to make treaties, provided two-
thirds of the senators present concur." Under the Treaty Clause, only the federal government can
enter into treaties with foreign nations. Under the Supremacy Clause of the Constitution, treaties
become part of the "law of the land," and conflicting state or local law is void. The president is
the agent of the United States in dealing with foreign countries.
Diff: 1
LO: 54.1 Apply the Foreign Commerce Clause and Treaty Clause of the U.S. Constitution.
AACSB: Analytical thinking
Classification: Concept

14) The ________ is an international organization created by a multilateral treaty in 1945 to
promote social and economic cooperation among nations and to protect human rights.
A) United Nations
B) League of Nations
C) General Agreement on Tariffs and Trade
D) World Trade Organization
Answer: A
Diff: 1
LO: 54.2 Explain the functions of the United Nations.
AACSB: Analytical thinking
Classification: Concept

15) The General Assembly of the United Nations (UN) is ________.
A) a collection of autonomous agencies that deals with the socio-economic problems of the
United States
B) the legislative body of the United Nations that is composed of all UN member nations
C) a group of 15 member nations that is primarily responsible for maintaining international peace
and security
D) the staff of persons that administers the day-to-day operations of the UN
Answer: B
Diff: 1
LO: 54.2 Explain the functions of the United Nations.
AACSB: Analytical thinking
Classification: Concept



4
Copyright © 2026