LLM Master of Laws MCQ 2 — Questions and Answers
Question 1: Under the doctrine of forum non conveniens, a US court may dismiss a case when:
- The plaintiff is not a US citizen
- An alternative forum is substantially more convenient and adequate (Correct answer)
- The defendant lacks minimum contacts with the forum state
- The claim arises under foreign law
Correct answer: An alternative forum is substantially more convenient and adequate
Forum non conveniens allows dismissal when an adequate alternative forum exists and private/public interest factors strongly favor that forum.
Question 2: In international commercial arbitration, the principle of kompetenz-kompetenz means:
- The arbitral tribunal can award punitive damages
- The arbitral tribunal has jurisdiction to rule on its own jurisdiction (Correct answer)
- National courts have priority over arbitral tribunals
- Arbitrators must be competent in the governing law
Correct answer: The arbitral tribunal has jurisdiction to rule on its own jurisdiction
Kompetenz-kompetenz (or compétence de la compétence) is the principle that an arbitral tribunal may rule on its own jurisdictional competence.
Question 3: The US Foreign Corrupt Practices Act (FCPA) primarily prohibits:
- Domestic bribery of private officials
- Bribery of foreign government officials to obtain or retain business (Correct answer)
- Foreign companies from operating in the US without disclosure
- Import of goods produced by forced labor
Correct answer: Bribery of foreign government officials to obtain or retain business
The FCPA prohibits US persons and companies from bribing foreign government officials to obtain or retain business advantages.
Question 4: Which doctrine holds that a parent corporation is generally NOT liable for the torts of its subsidiary?
- Alter ego doctrine
- Respondeat superior
- Corporate separateness / limited liability (Correct answer)
- Piercing the corporate veil
Correct answer: Corporate separateness / limited liability
Corporate separateness (limited liability) shields parent companies from subsidiary liabilities unless grounds exist to pierce the corporate veil.
Question 5: In US tax law, a 'check-the-box' regulation allows eligible entities to:
- Opt into S-corporation status without shareholder approval
- Choose their federal tax classification as corporation or pass-through entity (Correct answer)
- Elect to defer capital gains to future tax years
- Check whether their EIN is active with the IRS
Correct answer: Choose their federal tax classification as corporation or pass-through entity
Check-the-box regulations (Treas. Reg. §301.7701) let eligible entities elect their federal income tax classification.
Question 6: Under the CISG (UN Convention on Contracts for the International Sale of Goods), the convention applies:
- Only when both parties expressly adopt it in their contract
- Automatically when parties are in different contracting states, unless excluded (Correct answer)
- Only to sales of real property between signatory nations
- Exclusively to government procurement contracts
Correct answer: Automatically when parties are in different contracting states, unless excluded
CISG applies automatically to sales contracts between parties in different contracting states unless the parties have excluded it (Article 6).
Question 7: The doctrine of promissory estoppel in US contract law requires all of the following EXCEPT:
- A clear and definite promise
- Reasonable and foreseeable reliance by the promisee
- Detriment suffered by the promisee
- Consideration exchanged for the promise (Correct answer)
Correct answer: Consideration exchanged for the promise
Promissory estoppel is used precisely to enforce promises that lack consideration when the other elements are met.
LLM Master of Laws MCQ 2
Under the doctrine of forum non conveniens, a US court may dismiss a case when: