Global Business - Chap 8

What type of legal system relies on the accumulation of decisions made in prior cases?

• Civil Law / Code Law

• Common Law

• Statutory Law

• Constitutional Law

Statutory Law is often enacted to:

• Govern international trade

• Add or change existing laws for new situations

• Codify traditional laws

• Oversee executive decisions

What is the definition of "Liability" in the context of international business?

• The act of borrowing money from foreign banks.

• A broad legal term referring to almost every kind of responsibility, duty, or obligation.

• The process of investing in international stocks.

• A specific term used only in domestic business operations.

Which of the following is NOT an example of liability?

• Wages owed to employees

• Dividends owed to stockholders

• Taxes owed to government

• Revenue received from customers

What type of liability involves payments to banks?

• Wages owed to employees

• Dividends owed to stockholders

• Loans owed to banks

• Taxes owed to government

What does negligence in product liability imply?

• Intentional harm by the manufacturer

• Failure of the responsible party to follow standards of due care

• Product being used in an unintended manner

• All products are inherently safe

Which of the following is NOT a condition that must be met for a manufacturer to be held liable under strict liability laws?

• Product was sold in a defective condition

• Product was used exactly as intended

• Product reached the user without being substantially changed

• Seller routinely sells product

What does strict liability in product liability cases impose?

• Responsibility on the user to prove damage

• Responsibility on the manufacturer or seller for causing injury, whether intentional or not

• An obligation on the buyer to inspect the product

• A requirement for product registration with government bodies

What does the term "Property" include in the context of international business?

• Only physical buildings and land

• Land, money, stocks, bonds, buildings, and factories

• Only intellectual properties like patents and copyrights

• Services and digital products

What are property rights?

• Rights to use property only for residential purposes

• Rights to use property without excluding others

• The exclusive rights to possess and use property, exclude others, and dispose of it legally

• Rights to use property only for commercial purposes