Business Law, Ethics & International Trade Flashcards
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Read the first 7 Business Law, Ethics & International Trade flashcards as text
Which document issued by a bank guarantees payment to a supplier if the buyer fails to fulfill the terms of an international contract?
Answer: Letter of credit
A letter of credit is a bank-issued financial instrument that guarantees a seller will receive payment provided all specified documentary conditions are met.
An export control classification number (ECCN) is used to determine:
Answer: Whether a product requires a U.S. export license under the EAR
ECCNs are alphanumeric codes on the Commerce Control List that classify goods and technologies subject to the Export Administration Regulations (EAR).
The legal concept of 'quantum meruit' in a procurement context typically applies when:
Answer: A contract is voided but one party has already provided valuable services
Quantum meruit ('as much as deserved') allows a party to recover the reasonable value of services rendered even when no enforceable contract exists.
A supplier code of conduct typically addresses which of the following areas?
Answer: Labor standards, environmental practices, ethical conduct, and legal compliance
A supplier code of conduct sets minimum expectations across multiple areas including labor rights, environmental responsibility, anti-corruption, and legal compliance.
Under U.S. antitrust law, 'price fixing' among competitors is classified as:
Answer: A per se violation of the Sherman Act
Horizontal price fixing among competitors is a per se violation of Sherman Act §1, meaning it is automatically illegal regardless of intent or market effect.
When a U.S. importer classifies goods under the Harmonized Tariff Schedule (HTS), the classification determines:
Answer: The applicable tariff rate and import regulations for the goods
The HTS classification of imported goods determines the duty rate, applicable trade remedies, and any regulatory requirements such as quotas or import permits.
Which of the following BEST describes the ethical concept of 'transparency' in public sector procurement?
Answer: Ensuring procurement processes are open, documented, and accessible to stakeholders
Transparency in public procurement means that rules, decisions, and processes are clearly documented and accessible, enabling accountability and fair competition.