Reference - International Expansion

question 25

Multiple Choice

Reference - International Expansion. Zach wants to expand his coffee business internationally-into Zeno, a small remote country in Africa. His best friend Zora asks him if he plans to hire legal counsel for the expansion. Zach replies, "Of course not. The U.S. has the most strict laws regarding contracts, employment, and business practices. So long as I'm legal here, I'm legal anywhere. Besides, I studied up on Zeno law ten years ago, and I know it all." Zach proceeds and lands in jail in the remote country of Zeno for violating recently past laws protecting employees and mandating certain benefits. Authorities there claim that he sexually harassed an employee, failed to pay sufficient wages, and failed to give employees Zeno's mandated 12 weeks of vacation per year. Which of the following is true regarding Zach's defense that he thought he knew the law of Zeno because he had studied it some years before and that the laws under which he was arrested were new?

• A) Rules in international business change frequently, and Zach had a duty to stay current. It is not a defense that he studied the law at one time and that the laws at issue were new.
• B) Zach is entitled to rely as a defense on the fact that he had studied the law at one time. Officials in Zeno were charged with publicizing any changes.
• C) If Zach can prove that the laws at issue were passed within the last twelve months before he was arrested, he will get out of jail because under international law, there is a twelve month grace period for foreigners.
• D) If Zach can prove that the laws at issue were passed within the last six months before he was arrested, he will get out of jail because under international law, there is a six month grace period for foreigners.
• E) Zach cannot be prosecuted so long as he was not aware he was violating the law. He did not have the requisite intent to perform a criminal act regardless of whether the laws were new.

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Definitions:

Microeconomics

The branch of economics that studies the behavior of individuals and firms in making decisions on the allocation of limited resources.

Macroeconomics

The branch of economics that studies the behavior and performance of an economy as a whole, including inflation, unemployment, and economic growth.

Industrial Organization

A field of economics that studies the structure of and boundaries between firms and markets, and the strategic interactions within them.

Subsidize Tobacco Production

Financial support provided by governments to farmers or companies to assist in the growing or manufacturing of tobacco products.