August-TIF Ch03

Chapter 3: Dispute Settlement
True or False Questions
1. Diplomacy is also known as alternative dispute resolution.
Answer: True
Diff: 1
Topic: Settlement of Disputes Through Diplomacy
Skill: Legal Concepts
2. When mediators provide a channel of communications only, it is said that they are
involved in conciliation.
Answer: False
Diff: 1
3. Mediation involves the use of a third party who transmits and interprets the proposals
of the principal parties and sometimes advances independent proposals.
Answer: True
Diff: 2
4. The International Court of Justice is the principal judicial organ of the United Nations.
Answer: True
Diff: 1
Topic: Settlement of Disputes in International Tribunals
5. The Permanent Court of International Justice replaced the International Court of

Justice.
Answer: False
Diff: 1
6. All the member states of the United Nations are automatically parties to the Statute of
the International Court of Justice.
Answer: True
Diff: 2
7. Contentious jurisdiction is the power of the ICJ to give opinions about issues of
international law at the request of the United Nations or one of its specialized agencies.
Answer: False
Diff: 2
8. The Rome Statute is binding only on those states that formally express their consent to
be bound by its provisions.
Answer: True
Diff: 1
9. The WTOs dispute settlement process is governed by an agreement known as the

General Agreement on Tariffs and Trade.
Answer: False
Diff: 1
10. A state party includes the state itself, its agencies, and its subdivisions.
Answer: True
Diff: 1
11. A juridical person is a human being.
Answer: False
Diff: 1
12. The ability of a defendant to escape the jurisdiction of a court is known as delict.
Answer: False
Diff: 1
Topic: Settlement of Disputes in Municipal Courts
13. The protective nexus provides for jurisdiction when a national or international interest
of the forum is injured by the offender.
Answer: True
Diff: 1
14. In personam jurisdiction is the power of a court to decide matters relating to a natural
or juridical person physically present within the forum state.
Answer: True
Diff: 1
15. The doctrine of absolute sovereign immunity states that domestic courts must decline
to hear cases against foreign sovereigns out of deference to their role as sovereigns.
Answer: False
Diff: 2
Topic: Immunities of States from the Jurisdiction of Municipal Courts
16. The governmental interest doctrine states that a state is immune from suit in cases
involving injuries that are the result of its governmental actions.
Answer: False
Diff: 2
17. Immunity is available when it is waived by the state.
Answer: False
Diff: 1
18. The vested rights doctrine states that courts should apply the law of the state where
the rights of the parties legally became effective.
Answer: True
Diff: 1
Topic: Choosing the Governing Law
19. The act of state doctrine is the traditional device used by courts to determine the
choice of law.
Answer: False
Diff: 1
20. Courts that apply the governmental interest doctrine will make no choice of law
unless asked to do so by the parties.
Answer: True
Diff: 1
21. The doctrine used by common law courts to refuse jurisdiction is called forum non
conveniens.
Answer: True
Diff: 1
Topic: Refusal to Exercise Jurisdiction
22. Forum non conveniens originated from Scottish Common Law.
Answer: True
Diff: 1
23. Forum non conveniens is a court order directing a person not to proceed with
litigation in a foreign court.
Answer: False
Diff: 2
Topic: Opposition to the Exercise of Jurisdiction
24. In Germany, foreign law is regarded as a factual issue that the parties must prove in
the same way they prove any fact.
Answer: False
Diff: 2
Topic: Proving Foreign Law
25. In states that are signatories to the United Nations Convention on the Recognition and
Enforcement of Foreign Arbitral Awards, foreign arbitral awards can be enforced only if
they are first converted into a judicial judgment in the state where the arbitration was
heard.
Answer: False
Diff: 2
Topic: Recognition of Foreign Judgments
Multiple Choice Questions
26. ________ is a form of international dispute settlement that attempts to reconcile

parties to a disagreement by use of negotiation, mediation, or inquiry.
A. Litigation
B. Petition
C. Arraignment
D. Diplomacy
Answer: D
Diff: 1
27. ________ is the process of reaching an agreement through discussion between two
parties to a dispute.
A. Inquiry
B. Mediation
C. Negotiation
D. Conciliation
Answer: C
Diff: 1
28. ________ is bringing about a peaceful settlement or compromise between parties to a
dispute through the benevolent intervention of an impartial third party.
A. Mediation
B. Inquiry
C. Litigation
D. Negotiation
Answer: A
Diff: 1
29. The process by which an impartial third party makes an independent investigation and
suggests a solution to a dispute is called ________.
A. negotiation
B. conciliation
C. arbitration
D. inquiry
Answer: B
Diff: 1
30. The process by which an impartial third party makes an investigation to determine the
facts underlying a dispute without resolving the dispute itself is called ________.
A. mediation
B. negotiation
C. inquiry
D. conciliation
Answer: C
Diff: 1
31. Which of the following is true of inquiry?
A. It focuses only on a particular incident.

B. It tries to resolve an entire dispute.
C. It involves mediators who offer good offices.
D. It involves conciliation among mediators.
Answer: A
Diff: 2
32. Which of the following is true of the composition of the International Court of
Justice?
A. It is composed of 15 judges.
B. Its judges are elected to fifteen-year terms of office.
C. Its members represent their governments.
D. Its judges are elected by the European Commission.
Answer: A
Diff: 2
33. Which of the following is the principal judicial organ of the United Nations?
A. the Permanent Court of International Justice

B. the International Center for the Settlement of Investment Disputes
C. the International Court of Justice
D. the International Criminal Court
Answer: C
Diff: 1
34. The authority or power of a court or tribunal to hear a particular case or dispute is
called ________.
A. arbitration
B. jurisdiction
C. diplomacy
D. mediation
Answer: B
Diff: 1
35. ________ jurisdiction is the power of a court to hear a matter that involves a dispute
between two or more parties.
A. Contentious
B. Adjudicative
C. Optional clause
D. Advisory
Answer: A
Diff: 1
36. Optional clause jurisdiction differs from contentious jurisdiction in that, optional
clause jurisdiction is ________.
A. the requirement that a tribunal must have power over the parties before it may hear a
dispute
B. the power of the ICJ to give opinions about issues of international law at the request of
the United Nations or one of its specialized agencies
C. the power of a court to hear a matter that involves a dispute between two or more
parties
D. a unilateral grant of jurisdiction by a state to the ICJ that allows the Court to resolve
disputes involving that state
Answer: D
Diff: 2
37. The ________ holds that a state has to respond to a suit brought against it before the
ICJ only to the extent to which the state bringing the suit has also accepted the
jurisdiction of this court.
A. vested rights doctrine

B. rule of reciprocity
C. public trust doctrine
D. choice of law clause
Answer: B
Diff: 1
38. ________ is the power of the ICJ to give opinions about issues of international law at
the request of the United Nations or one of its specialized agencies.
A. In personam jurisdiction
B. Personal jurisdiction
C. Advisory jurisdiction
D. In rem jurisdiction
Answer: C
Diff: 1
39. Which of the following is true of the International Criminal Court?
A. It is the principal judicial organ of the United Nations.

B. Its judges are elected by the United Nations General Assembly.
C. Its jurisdiction and functioning are governed by the Rome Statute.
D. The courts jurisdiction is limited to events taking place since Jan 1, 2012.
Answer: C
Diff: 3
40. Which of the following is true of the World Trade Organization (WTO)?
A. Its dispute settlement process is governed by an agreement known as the General

Agreement on Tariffs and Trade.
B. It is the trade-dispute settlement body of the United Nations.
C. Its functions are governed by the Rome Statute.
D. It is responsible for implementing and enforcing the rules of international trade
between nations.
Answer: D
Diff: 3
41. Which of the following is a dispute settlement organ of the WTO that is charged with
administering and carrying out the Dispute Settlement Understanding?
A. International Court of Justice

B. International Criminal Court
C. International Center for the Settlement of Investment Disputes
D. Appellate Body
Answer: D
Diff: 1
42. ________ is the process by which parties to a dispute submit their differences to the
binding judgment of an impartial third person or group selected by mutual consent.
A. Conciliation
B. Diplomacy
C. Arbitration
D. Mediation
Answer: C
Diff: 1
43. ________ is the requirement that a tribunal must have power over the parties before it
may hear a dispute.
A. Advisory jurisdiction
C. In personam jurisdiction
Answer: B
Diff: 1
44. Which of the following is true of a juridical person?
A. It is a human being.
B. It makes decisions through agents.
C. It is an illegal entity.
D. It can neither sue nor be sued.
Answer: B
Diff: 2
45. ________ is a suit in which the parties are not at odds but instead cooperate to obtain
a judgment.
A. Collusive action
B. Arbitration
C. Delict
D. Anti-suit injunction
Answer: A
Diff: 1
46. The ability of a defendant to escape the jurisdiction of a court is known as ________.
A. jus commune
B. diplomacy
C. delict
D. immunity
Answer: D
Diff: 1
47. The ________ consists of the criteria that allow a court to assume criminal
jurisdiction over an offense that was committed within the forum state.
A. territoriality nexus
B. nationality nexus
C. protective nexus
D. universality nexus
Answer: A
Diff: 1
jurisdiction when the defendant is a national of the forum state.
C. protective nexus
Answer: B
Diff: 1
jurisdiction in cases in which a national interest of the forum state was injured.
C. protective nexus
Answer: C
Diff: 1
jurisdiction if the offense is one recognized by the international community as being of
world-wide concern, including piracy, slave trade, attacks on or the hijacking of aircraft,
genocide, war crimes, and crimes against humanity.
C. protective nexus
Answer: D
Diff: 1
51. ________ jurisdiction is the power of a court or tribunal to determine the rights of a
party who appears before it.
A. Contentious
B. In personam
C. Advisory
D. In rem
Answer: B
Diff: 1
52. The ________ is a provision in a contract designating a particular court or tribunal to

resolve any dispute that may arise concerning the contract.
A. forum selection clause

B. choice of law clause
C. supremacy clause
D. due process clause
Answer: A
Diff: 1
53. ________ is the power of a court to determine the ownership rights of persons as to
property located within the forum state.
A. Advisory jurisdiction
C. In personam jurisdiction
Answer: D
Diff: 1
54. The ________ holds that municipal courts must decline to hear suits against foreign
sovereigns.
A. governmental interest doctrine

B. doctrine of sovereign or state immunity
C. rule of absolute sovereign immunity
D. theory of restrictive sovereign immunity
Answer: B
Diff: 1
55. The ________ holds that a foreign state is immune from all types of suits.
A. act of state doctrine

Answer: C
Diff: 1
56. The ________ holds that a foreign state is not immune when the cause of action for a
suit is based on conduct unrelated to the states governmental activities.
A. most significant relationship doctrine
Answer: D
Diff: 1
57. The ________ doctrine states that the act of a government within the boundaries of its
own territory is not subject to judicial scrutiny in a foreign municipal court.
A. vested rights
B. most significant relationship
C. act of state
D. governmental interest
Answer: C
Diff: 1
58. Rules used by municipal courts to determine which states law they should apply in
hearing a civil dispute are called ________.
A. the rules of reciprocity

B. choice of law rules
C. the rules of absolute sovereign immunity
D. vested rights rules
Answer: B
Diff: 1
59. The ________ is a provision in a contract designating the state whose law will govern
disputes relating to the contract.
A. escape clause
B. omnibus clause
C. choice of law clause
D. forum selection clause
Answer: C
Diff: 1
60. The ________ doctrine states that courts should apply the law of the state where the
rights of the parties legally became effective.
A. act of state
B. vested rights
C. most significant relationship
Answer: B
Diff: 1
61. In civil law countries, a(n) ________ is any private wrong or injury, or a minor public
wrong or injury.
A. delict
B. certiorari
C. writ
D. estoppel
Answer: A
Diff: 3
62. The ________ doctrine states that courts should apply the law of the state that has the
closest and most real connection with the dispute.
A. act of state
B. vested rights
Answer: C
Diff: 1
63. The ________ doctrine holds that courts should apply the law of the state that has the
most interest in determining the outcome of the dispute.
A. act of state
B. vested rights
Answer: D
Diff: 1
64. The ________ states that a municipal court will decline to hear a dispute when it can
be better or more conveniently heard in a foreign court.
A. forum non conveniens

B. anti-suit injunction
C. vested rights doctrine
D. choice of law clause
Answer: A
Diff: 1
65. The ________ is a court order directing a person not to proceed with litigation in a
foreign court.
A. self-judging reservation
B. forum non conveniens
C. Corpus Juris Civilis
D. anti-suit injunction
Answer: D
Diff: 1
Topic: Opposition to the Exercise of Jurisdiction
Essay Questions
66. Differentiate between good offices and conciliation.
Answer: Mediation involves the use of a third party who transmits and interprets the
proposals of the principal parties and sometimes advances independent proposals. When
mediators provide a channel of communications only, it is said that they are offering their
good offices. When they make a formal investigation and present a formal proposal, they
are involved in a conciliation.
Diff: 2
67. Write a short note on the functions and composition of the International Court of
Justice.
Answer: The ICJ is the principal judicial organ of the United Nations. Its seat is at the
Peace Palace in The Hague, The Netherlands. It began work in 1946, when it replaced the
Permanent Court of International Justice, which had functioned in the Peace Palace since
1922.
Functions The ICJ has a dual role: to settle in accordance with international law the
legal disputes submitted to it by states, and to give advisory opinions on legal questions
referred to it by duly authorized international organs and agencies.
Composition The ICJ is composed of 15 judges elected to nine-year terms of office by
the United Nations General Assembly and Security Council sitting independently of each
other. The members of the Court do not represent their governments but are independent
magistrates.
Diff: 3
68. Explain self-judging reservations.
Answer: One questionable device that states have used to recognize the Courts
jurisdiction under the Optional Clause but to still have a way out if they decide they do
not want to respond to a particular suit is known as a self-judging reservation or Connally
Reservation. Such a clause allows a state to exclude from its acceptance of Optional
Clause jurisdiction any matter that it later determines is within its own domestic
jurisdiction. This can be a double-edged sword, however, because the principle of
reciprocity allows would-be defendants to invoke the plaintiffs self-judging reservation.
Diff: 3
69. Write a short note on the International Criminal Court.
Answer: The International Criminal Court (ICC) is an independent, permanent court of

last resort that tries persons accused of the most serious crimes affecting the international
community. As a court of last resort, it will not act if a municipal judicial system is
investigating or prosecuting the case. The jurisdiction and functioning of the ICC are
governed by the Rome Statute, adopted in Rome, Italy, in 1998 by the United Nations
Diplomatic Conference of Plenipotentiaries on the Establishment of an International
Criminal Court. The Rome Statute is binding only on those states that formally express
their consent to be bound by its provisions. The statute entered into force on July 1, 2002,
when 60 states agreed to become parties.
Diff: 3
70. What are the three dispute settlement organs carrying out the Dispute Settlement
Understanding?
Answer: The organs charged with administering and carrying out the DSU are (1) the
Dispute Settlement Body, (2) the Dispute Settlement Panels, and (3) the Appellate Body.
Diff: 1
71. Distinguish between a natural person and juridical person.
Answer: A natural person is a human being who has the nationality of a home state. That
is, the home state must be a contracting party to the convention and not itself a party to
the dispute. A juridical person is a legal entity, other than a natural person, that has
sufficient existence in the eyes of the law to function legally, sue and be sued, and make
decisions through agents.
Diff: 3
72. Differentiate between in personam jurisdiction and in rem jurisdiction.
Answer: In personam jurisdiction is the power of a court to decide matters relating to a

natural or juridical person physically present within the forum state. Natural persons
subject to in personam jurisdiction include nationals of the forum state, individuals
physically present within the state, individuals domiciled in the state, and individuals who
consent to such jurisdiction. In rem jurisdiction is the power of a court to determine the
ownership rights of all persons with respect to particular property located within the
territory of the forum state.
Diff: 3
73. Explain the act of state doctrine.
Answer: The act of state doctrine is a rule that restrains municipal courts in some
countries from exercising jurisdiction over foreign states. This rule is most developed in
the United States, where it is based on the U.S. constitutional requirement of separation
of powers. That is, because the U.S. Constitution assigns to the executive branch of the
government responsibility for the conduct of foreign affairs, the courts must decline to
hear cases that might adversely affect the executives conduct of those affairs.
Diff: 2
74. Briefly describe the most significant relationship doctrine.
Answer: The most significant relationship doctrine has a court apply the law of the state
that has the most contacts with the parties and their transaction. In essence, the courts will
consider the following general factors in all cases: (1) Which states law best promotes
the needs of the international system? (2) Which states law will be furthered the most by
applying it to the case at hand? and (3) Which states law will best promote the
underlying policies of the legal subject-matter area involved?
Diff: 2
75. Which doctrine is used by common law courts to refuse jurisdiction? Explain.
Answer: The doctrine used by common law courts to refuse jurisdiction is called forum
non conveniens. It originated from Scottish common law and appeared in U.S. courts in
the early 1900s. In the Scottish case, a French plaintiff brought suit in Scotland against a
French defendant, claiming damages from cargo lost en route from Scotland to France.
The Scottish court, realizing that France had not only better capabilities but also an
interest in the decision, dismissed the case, instructing the parties to seek a forum in
France. On appeal to the House of Lords, that court found that the doctrine was not only
acceptable but prudent.
Diff: 3

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Chapter 3: Dispute Settlement

True or False Questions

1. Diplomacy is also known as alternative dispute resolution.

5. The Permanent Court of International Justice replaced the International Court of

9. The WTOs dispute settlement process is governed by an agreement known as the

11. A juridical person is a human being.

17. Immunity is available when it is waived by the state.

22. Forum non conveniens originated from Scottish Common Law.

Multiple Choice Questions

26. ________ is a form of international dispute settlement that attempts to reconcile

31. Which of the following is true of inquiry?

A. It focuses only on a particular incident.

A. the Permanent Court of International Justice

A. vested rights doctrine

39. Which of the following is true of the International Criminal Court?

A. It is the principal judicial organ of the United Nations.

A. Its dispute settlement process is governed by an agreement known as the General

A. International Court of Justice

44. Which of the following is true of a juridical person?

52. The ________ is a provision in a contract designating a particular court or tribunal to

A. forum selection clause

A. governmental interest doctrine

A. act of state doctrine

A. the rules of reciprocity

A. forum non conveniens

66. Differentiate between good offices and conciliation.

68. Explain self-judging reservations.

69. Write a short note on the International Criminal Court.

Answer: The International Criminal Court (ICC) is an independent, permanent court of

71. Distinguish between a natural person and juridical person.

72. Differentiate between in personam jurisdiction and in rem jurisdiction.

Answer: In personam jurisdiction is the power of a court to decide matters relating to a

73. Explain the act of state doctrine.

74. Briefly describe the most significant relationship doctrine.

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