Business Public Law exam.
1. Defenses available for air carriers to avoid liability in case of delay and cancellation.
Answer:
2. What purposes a bill of lading serve in international transportation? Explain them briefly!
Answer:
3. Interpretation of the freedom of establishment for companies in the EU.
Answer:
4. Which one is not an exception to the Most Favored Treatment principles?
Correct Answers: (3 exceptions)
 preferential treatment,
 free trade agreements,
 customs unions
5. In relation to the dispute settlement mechanism of the WTO, which statement is not
true?
Answer:
Business can directly turn to the WTO to resolve business disputes.
6. What is primary establishment in the interpretation of the ECJ?
Answer:
7. What is off-shore business?
Answer:
A business that does not conduct business activity in the country where it was incorporated.
8. Which is not a defense granted to the producer in EU product liability law?
Answer:
Lack of proper testing.
9. Which flight is not under the scope of the EU Regulation on Air Passenger Rights?
Answer:
10. In deciding on the defectiveness of a product what factor EU product liability law does
not take into account?
Answer:
The time involved in the development of the product.
11. What is the most significant difference in between a free trade area and a custom
union?
Answer:
12. Which is not a safeguard to exercising eminent domain (expropriation) in the EU?
Answer:
13. Which of the following statement is true for anti-dumping procedure in the EU?
Answer: The Commission may introduce special customs rate against these products.
14. What does the monist model in company law call for?
Answer:
15.
Answer:
16. Which of the scenarios qualifies as distance selling in the EU?
Answer: Buying clothes from a web shop.
17. Which statement is not true for the event of cancellation of a flight in relation to air passenger
rights regulation in the EU?
Answer: Cancellation is when a flight is cancelled in 7 days prior to departure.
18. For which scenario the consumer can exercise the special cancellation right granted
under the EU distance selling legal framework?
Answer: Furniture designed following the measurement provided for by the consumer.
19. What does the state-of-the-art defense call for in EU product liability law?
Answer: State of scientific and technical knowledge was not available to discover the product’s
defect.
20. In which of the following scenario the state enjoys immunity from the jurisdiction of
foreign courts?
Answer: Changing taxation law.
21. What is an integration clause in the sense of the CIGS?
Answer: A provision in the contract directing a court to ignore prior or contemporaneous
agreements of the parties.
22. Which one is not a defense to the airline against monetary compensation claims under
the EU Air Passenger Rights Regulation?
Answer: The crew was slow in boarding passengers.
23. What is secondary establishment in the interpretation of the ECJ?
Answer: Moving the real seat of the company to another member state while maintaining the
original legal personality.
24. Which condition to claim damages under product liability law is not in the burden of
proof for the victim?
Answer: Establishing casual link.
25. Which of the below sources are not sources of international business law?
Answer: Guidelines of national governments.
26. What is considered denied boarding in the sense of the EU Air Passenger Rights
Regulation?
Answer: The airlines deny boarding to a pregnant lady in the 38th week of pregnancy.
27. Which of the following sales transaction fall under the scope of the CIGS?
Answer: The German business obtains ownership over the computers of a Hungarian business in
a execution sale by the authority of law.
28. Which of the following statements is not true for the special cancellation right of the
consumer in distance selling transactions?
Correct Answers:
As the consumer does not have a chance to physically examine the product before
purchase, the law provides him special cancellation rights in order to correct any
mistakes (e.g. the product is not what he wanted)
 The consumer may cancel the contract 14 days after it was delivered to him (objective
cancellation right)
 The consumer does not have to prove any breach, defectiveness or irregularities. The
sole grounds of cancellation is that he does not want the product (it is a general risk of
businesses involved in distance selling)
 The only cost the consumer shall bear is the costs of shipping the product back to the
seller (consumer is not responsible for loss of value arisen from using the product)
 In case the business does not provide writen information on the cancellation rights,
the cancellation period increases up to 1 year and 14 days
 In case the consumer gets the written information on his cancellation rights in the 1
year 14 days time frame, he 14 days should be counted from the day of this
information
29. For which scenario the consumer shall not exercise the special cancellation right
granted under the EU distance selling legal framework?
Answer:
No cancellation:
 product was manufactured for the specific request of the consumer
(e.g. engraved iPad)
 price of the product or the service depends on the changes of
monetary market (e.g. investment products)
newspapers, magazines, books
 travel services (e.g. flight tickets)
in case the consumer cannot send the whole product back
30. What is considered a security risk under the air passenger rights legal framework in the
EU?
Answer:
31. Which one is not under the scope of the doorstep selling directive of the EU?
Answer:
32. What does the term ‘free’ call for in INCOTERMS trade terms?
Answer:
33. Which one is not the carrier’s immunities list in the Hague-Visibly Rules?
Answer: Incompetent crew.
34. What loss (damage) is not recovered under EU product liability law?
Answer: Damage to a drawer that is worth 100 EUR
35. What function is not among the functions to a bill of lading?
Answer: Evidence of the sales transaction.
36. Which subjective factor the ESJ takes into account when interpreting the state-of-theart defense in EU product liability law?
Answer: Accessibility to the knowledge.
37. Which of the following statement is not specific to commercial usage?
Answer: Content is certain.
38. Which one of the following dispute settlement methods does not require the
involvement of an impartial third part?
Answer: Negotiation.
39. Under EU product liability law, which one is not considered a product?
Answer: Unprocessed agricultural products.