Multiply Choice
1. A letter of credit is issued by a.
(a) Buyer
(b) Seller
(c) Shipping company
(d) Bank

2. Tariffs are a tax on. Treaties like NAFTA seek to tariffs.
(a) Imports; increase
(b) Imports; decrease
(c) Exports; increase
(d) Exports; decrease

3. The President negotiates a defense agreement with a foreign government. To take effect, the agreement must be ratified by which of the following?
(a) Two-thirds of the House of Representatives
(b) Two-thirds of the Senate
(c) The Supreme Court
(d) A and B
(e) A, B, and C

4. Lynn owns a small printing company in Nevada. She makes a contract with a company in France to print custom children’s books and ship them to France. The contract does not say anything about which body of law will be used to resolve any disputes that arise. If there is a conflict, which body of law will actually be applied to the case?
(a) Nevada law
(b) French law
(c) The CISG
(d) None of the above

5. Countervailing duties are imposed when.
(a) Dumping occurs
(b) Goods are unreasonably subsidized
(c) Both A and B
(d) None of the above