LLM Master of Laws MCQ 3 — Questions and Answers
Question 1: Under WTO law, the Most-Favored-Nation (MFN) obligation in GATT Article I requires a member to:
- Give domestic products preferential treatment over imports
- Extend any trade advantage granted to one country to all WTO members immediately (Correct answer)
- Negotiate bilateral free trade agreements before multilateral ones
- Cap tariffs at their bound rate for all trading partners
Correct answer: Extend any trade advantage granted to one country to all WTO members immediately
MFN requires that any trade advantage, favour, privilege, or immunity granted to any country must be accorded immediately to all WTO members.
Question 2: In US securities law, Rule 10b-5 under the Securities Exchange Act of 1934 primarily prohibits:
- Insider trading based on material non-public information and securities fraud (Correct answer)
- Short-selling of shares in companies undergoing bankruptcy
- Issuing securities without SEC registration
- Proxy solicitation without adequate disclosure
Correct answer: Insider trading based on material non-public information and securities fraud
Rule 10b-5 is the SEC's broad anti-fraud rule prohibiting misrepresentations, omissions, and manipulative devices in connection with securities transactions.
Question 3: A 'hardship' clause in an international commercial contract typically entitles the affected party to:
- Terminate the contract immediately without liability
- Request renegotiation when a fundamental change of circumstances occurs (Correct answer)
- Suspend performance indefinitely without notice
- Claim force majeure relief for any cost increase
Correct answer: Request renegotiation when a fundamental change of circumstances occurs
Hardship clauses, as described in the UNIDROIT Principles, entitle the affected party to request renegotiation when events fundamentally alter the equilibrium of the contract.
Question 4: Under the EU General Data Protection Regulation (GDPR), the 'right to be forgotten' is more precisely known as:
- The right to data portability
- The right to erasure under Article 17 (Correct answer)
- The right to restriction of processing
- The right to object under Article 21
Correct answer: The right to erasure under Article 17
Article 17 GDPR grants data subjects the right to erasure ('right to be forgotten') in specified circumstances.
Question 5: In US immigration law, an L-1A visa is designed for:
- Athletes and entertainers of extraordinary ability
- Intracompany transferees in managerial or executive positions (Correct answer)
- Workers in specialty occupations requiring a bachelor's degree
- Treaty investors from countries with qualifying commerce treaties
Correct answer: Intracompany transferees in managerial or executive positions
The L-1A visa allows multinational companies to transfer managers and executives from a foreign affiliate to a US office.
Question 6: The merger doctrine in copyright law provides that:
- Two copyrights can be combined into one stronger right
- Copyright protection does not extend to expression when it merges with an unprotectable idea (Correct answer)
- Merged companies retain all copyrights of the acquired entity
- A derivative work merges into the original for licensing purposes
Correct answer: Copyright protection does not extend to expression when it merges with an unprotectable idea
Under the merger doctrine, when there are only a few ways to express an idea, the expression merges with the idea and neither is protectable by copyright.
Question 7: A 'liquidated damages' clause is enforceable under US contract law when:
- The amount is a penalty designed to deter breach
- Actual damages were easy to calculate at the time of contracting
- The amount is a reasonable pre-estimate of harm and actual damages were difficult to calculate (Correct answer)
- Both parties waive the right to seek actual damages in a separate agreement
Correct answer: The amount is a reasonable pre-estimate of harm and actual damages were difficult to calculate
Liquidated damages are enforceable when they represent a reasonable forecast of compensatory damages and actual harm is difficult to estimate.
LLM Master of Laws MCQ 3
Under WTO law, the Most-Favored-Nation (MFN) obligation in GATT Article I requires a member to: