Question

Legal forces are important external forces that international managers need to understand. They are developed at the national level, so international ventures should take care to build relationships with local-level lawyers. Identify each of the legal characteristics by matching where it is found to the correct characteristic.

a. U.S. Product Liability Law
b. EU Competition Law
c. US and EU
d. U.S. Tort Law
e. U.S. Competition Law
f. France

1. Per se application
2. Misuse of activity
3. Extraterritoriality
4. Trade obstacle, non-tariff
5. Strict liability
6. Punitive damages

Answer 1

1. Per se application - US Competition law

Justification: It is a provision of US competition law

2. Misuse of activity - EU Competition law

Justification: It is a provision of EU competition law

3. Extraterritoriality - US and EU

Justification: It is a provision of US and EU antitrust and competition law

4. Trade obstacle, non-tariff - France

Justification: These are considered to be part of the France trade system

5. Strict liability - U.S. Tort Law

Justification: It is part of the U.S. Tort Law and depends on intent to harm liability

6. Punitive damages - U.S. Product Liability Law

Justification: It is a provision of U.S. Product Liability Law