LLM Master of Laws MCQ 5 — Questions and Answers
Question 1: The Vienna Convention on the Law of Treaties Article 26 enshrines the principle of:
- Jus cogens — peremptory norms that cannot be derogated
- Pacta sunt servanda — treaties must be performed in good faith (Correct answer)
- Rebus sic stantibus — changed circumstances may excuse treaty performance
- Lex posterior — later treaties supersede earlier conflicting ones
Correct answer: Pacta sunt servanda — treaties must be performed in good faith
VCLT Article 26 codifies pacta sunt servanda, requiring that every treaty in force be performed in good faith by the parties.
Question 2: In US employment law, the 'economic realities' test is used primarily to determine:
- Whether a worker is an employee or an independent contractor (Correct answer)
- The appropriate minimum wage rate for tipped employees
- Whether an employer meets the threshold size for FMLA coverage
- How to calculate overtime pay under the FLSA
Correct answer: Whether a worker is an employee or an independent contractor
The economic realities test looks at the totality of the working relationship — especially the degree of control and economic dependence — to classify workers under the FLSA.
Question 3: Under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, a court may refuse enforcement if:
- The arbitration took place in a non-signatory country
- Enforcement would be contrary to public policy of the enforcing country (Correct answer)
- The award was rendered more than three years before the application
- The losing party is domiciled in a different country than the winning party
Correct answer: Enforcement would be contrary to public policy of the enforcing country
Article V(2)(b) of the New York Convention allows refusal of enforcement if it would be contrary to the public policy of the country where enforcement is sought.
Question 4: In US conflict of laws, the 'significant relationship' test for choice of law in contract disputes was articulated in:
- Restatement (First) of Conflict of Laws, applying the lex loci contractus rule
- Restatement (Second) of Conflict of Laws, considering the most significant relationship (Correct answer)
- UCC Article 1, which mandates application of the state with the most contacts
- Erie Railroad v. Tompkins, requiring federal courts to apply state common law
Correct answer: Restatement (Second) of Conflict of Laws, considering the most significant relationship
The Restatement (Second) of Conflict of Laws uses a 'most significant relationship' test weighing multiple contacts to determine which state's law governs a contract dispute.
Question 5: A 'representations and warranties insurance' (RWI) policy in M&A transactions primarily benefits buyers by:
- Guaranteeing that the target meets a minimum revenue threshold post-closing
- Providing coverage if the seller's representations in the purchase agreement turn out to be false (Correct answer)
- Insuring the buyer against post-closing antitrust regulatory challenges
- Replacing the seller's indemnification obligation entirely in all cases
Correct answer: Providing coverage if the seller's representations in the purchase agreement turn out to be false
RWI policies allow buyers to make claims directly against the insurer if the seller's reps and warranties are breached, reducing reliance on seller indemnification.
Question 6: Under US immigration law, the doctrine of 'consular nonreviewability' means:
- Immigration courts cannot review USCIS benefit denials
- Federal courts generally cannot review a consular officer's visa denial decision (Correct answer)
- The State Department may not review decisions made by consular officers abroad
- Consular officers must submit visa denials to an administrative review board
Correct answer: Federal courts generally cannot review a consular officer's visa denial decision
Consular nonreviewability limits judicial review of consular officers' visa decisions because visa issuance is a plenary executive power.
Question 7: Under US constitutional law, Chevron deference (prior to its modification) required courts to defer to an agency's statutory interpretation when:
- The agency was created by Congress and not the executive branch
- Congress has not directly addressed the precise question and the agency's interpretation is reasonable (Correct answer)
- The agency's interpretation was upheld in prior circuit court decisions
- The statute was passed within the last ten years and the agency has subject-matter expertise
Correct answer: Congress has not directly addressed the precise question and the agency's interpretation is reasonable
Chevron U.S.A. v. NRDC established a two-step framework: if Congress is silent or ambiguous on the issue, courts defer to a reasonable agency interpretation.
The Vienna Convention on the Law of Treaties Article 26 enshrines the principle of: