SA IBL TB8e Ch20

CHAPTER 20—ENVIRONMENTAL LAW

TRUE/FALSE

1. Investors in developing countries face minimal risk that environmental standards in those countries will become stricter over time.

ANS: F PTS: 1

2. The real purpose of U.S. corporate average fuel economy standards was to make it difficult for Japanese luxury cars to compete in the U.S. market.

ANS: F PTS: 1

3. The GATT allows member nations to impose tariffs on imported products that are not "sustainably" produced (that is, that are produced in ways that cause harm to the environment).

ANS: F PTS: 1

4. Under principles of customary international law, no state has the right to use or to permit the use of its territory in a manner causing serious consequences or injury if the injury can be demonstrated by clear and convincing evidence.

ANS: T PTS: 1

5. Many foreign nations attract investment because of their less demanding labor and environmental laws.

ANS: T PTS: 1

6. The central problem in environmental law lies in determining which activities alter the environment to an unacceptable extent.

ANS: T PTS: 1

7. Conservationists have sought international environmental legal relief through dispute resolution, import bans, and multilateral treaties.

ANS: T PTS: 1

8. One dispute resolution mechanism used frequently in international disputes over the environment is binding adjudication.

ANS: F PTS: 1

9. Environmental issues are generally limited to cross-border pollution.

ANS: F PTS: 1

10. One example of a global solution to a global environmental problem is a multilateral agreement concerning depletion of the ozone layer and the production of chlorofluorocarbons.

ANS: T PTS: 1

11. Due to the doctrine of ipso facto, one legal uncertainty that foreign investors need not worry about is that environmental laws will be changed once they have invested or begun operations in a host country.

ANS: F PTS: 1

12. American law fails to regulate pesticides that are exported to other countries.

ANS: F PTS: 1

13. Before a U.S. firm can export hazardous waste to a foreign country, they must have written consent from that government delivered to the U.S. Environmental Protection Agency.

ANS: T PTS: 1

14. There are no U.S. controls over the export of chemicals.

ANS: F PTS: 1

15. Most of the developing countries of Africa and Latin America are free from the environmental pollution of the heavily industrialized nations.

ANS: F PTS: 1

16. Developing countries are especially eager to reduce their industrial and transportation emissions.

ANS: F PTS: 1

17. Nations have made considerable progress in putting into effect regional agreements for the prevention of marine pollution.

ANS: T PTS: 1

18. Countries of the South Pacific have been very successful in enforcing strict environmental safeguards.

ANS: F PTS: 1

19. The United Nations has done very little to address the issues of environmental matters.

ANS: F PTS: 1

20. The Basel Convention on Transboundary Movements of Hazardous Wastes has been adopted by over 150 nations.

ANS: T PTS: 1

21. The Basel Convention prohibits shipments of hazardous wastes by a signatory country to a country that has not signed the convention.

ANS: T PTS: 1

22. The most important aspect of the Basel Convention has been that the signatory nations succeeded in defining what constitutes hazardous waste.

ANS: F PTS: 1

23. Because of the lack of international agreement to protect the ozone layer from damage by chemical emissions into the atmosphere, firms operating in developing countries will be able to continue to emit ozone damaging chemicals in the future.

ANS: F PTS: 1

24. Under the Montreal Protocol, trade in chlorofluorocarbons is strictly controlled.

ANS: T PTS: 1

25. Developing nations tend to oppose extensive international environmental regulation because it impairs their ability to profit from less-sophisticated production techniques.

ANS: T PTS: 1

26. There is no U.S. law forbidding the export of pesticides banned in the U.S. to foreign countries.

ANS: T PTS: 1

27. The U.S. prohibits the export of pesticides not approved by the U.S. EPA.

ANS: F PTS: 1

28. The "circle of poison" refers to the importation of crops produced in developing nations using pesticides banned in the U.S.

ANS: T PTS: 1

MULTIPLE CHOICE

1. The Arias v. Dyncorp case involved a question of:
a.
Whether Dyncorp was required to notify Ecuadorians of the chemical spraying in advance.
b.
Whether the indiscriminate spraying of chemicals violates international law.
c.
Whether the country of Ecuador had a claim against a U.S. corporation.
d.
Whether the plaintiffs' claims pursuant to the Alien Tort Claims Act should be dismissed.

ANS: D PTS: 1

2. Under NAFTA's Environmental Side Agreements:
a.
Mexican environmental laws must gradually approach U.S. and Canadian standards for clean air, clean water, and hazardous waste.
b.
U.S. industries can request a tariff on the import of products from Mexico that are produced under environmentally unsustainable methods.
c.
NAFTA benefits may be suspended where any state party has shown a pattern of failure to effectively enforce its environmental law.
d.
A and B.
e.
A and C.

ANS: C PTS: 1

3. In the Shrimp Importation Case, the WTO Appellate Body determined that:
a.
The U.S. program certifying the use of TEDs or devices of comparable effectiveness was an unjustified discrimination against Malaysian shrimp products.
b.
The U.S. program certifying the use of TEDs or devices of comparable effectiveness was not an unjustified discrimination against Malaysian shrimp products.
c.
The U.S. program was invalid because it treated Malaysian shrimp differently than shrimp from other countries.
d.
The U.S. program was valid as it related to conservation of an exhaustible natural resource.

ANS: B PTS: 1

4. Developing nations generally favor
a.
Creation of a permanent trade and environment committee in the WTO.
b.
An ad valorem tax on all imports to promote environment-friendly development in poorer nations.
c.
Transfer of environmentally appropriate technology for little or no charge.
d.
A and B.
e.
B and C.

ANS: E PTS: 1

5. Which of the following statements are true about current international environmental conventions?
a.
The United States has signed the Biodiversity Convention.
b.
The United States has agreed to and set timetables for limiting carbon dioxide emissions in the Climate Change Convention.
c.
Third World countries have greater flexibility in complying with the Montreal Protocol on Substances that Deplete the Ozone Layer.
d.
A and B.
e.
B and C.

ANS: C PTS: 1

6. In the area of solving international environmental issues, the North American approach has been to use:
a.
Arbitration.
b.
The World Court.
c.
Bilateral treaties.
d.
Mediation.

ANS: C PTS: 1

7. Within the European Union, an environmental action program came about because of:
a.
The Uruguay Rounds.
b.
The United Nations.
c.
The Bill of Rights.
d.
The Single European Act.

ANS: D PTS: 1

8. Multinational agencies have advanced the environmental effort by applying uniform environmental standards to projects they finance. For example:
a.
The World Health Organization has guidelines for pollution controls.
b.
The World Bank has a volume of Environmental Guidelines for industrial projects.
c.
The Tokyo Stock Exchange allows no investors who do not adhere to its environmental guidelines.
d.
None of the above.

ANS: B PTS: 1

9. The cornerstone of U.S. environmental regulation of exports is the concept of:
a.
Receiving the prior informed consent of the foreign countries to which the exports are going.
b.
U.S. firms may not export any hazardous materials that they could not sell in the United States.
c.
Advance permission to export from the Environmental Protection Agency.
d.
Receiving advance permission from the United Nations before exporting hazardous or toxic materials.

ANS: D PTS: 1

10. Before a U.S. firm can export chemical substances subject to the U.S. Toxic Substances Control Act:
a.
The firm must notify the EPA of the export.
b.
The firm must maintain adequate records.
c.
The EPA must notify the foreign country of destination.
d.
All of the above.

ANS: D PTS: 1

11. The "circle of poison" refers to:
a.
Getting food poisoning when traveling to a country with unsanitary food preparation conditions.
b.
Chemicals that are at first banned in the United States, then allowed to be produced, and then banned again.
c.
The foreign sale of U.S.-made pesticides that have been banned in the United States and then reimported as a residue on imported foods.
d.
None of the above.

ANS: C PTS: 1

12. Dynatec, Inc. (a U.S. corporation based in New York) engages in oil drilling in Colombia. Indigenous Indian tribes finds that certain rivers and streams have become polluted as a result and that hunting and fishing are adversely affected. A U.S. lawyer brings a lawsuit on behalf of the tribe in federal district court in New York. Dynatec wants the action dismissed, or at least not heard by the federal court in New York. The best bet for the case not to be heard in the federal court in New York would be for the Dynatec lawyer to:
a.
Move to dismiss for lack of personal jurisdiction.
b.
Move to dismiss for lack of subject matter jurisdiction.
c.
Move for a stay pending arbitration.
d.
Move for dismissal based on forum non conveniens.

ANS: D PTS: 1

13. Some of the inadequacies of the traditional international pollution-control system include:
a.
Voluntary consent by nations to international litigation or arbitration of environmental disputes is rare.
b.
Litigation in the polluting company's home country can be circumvented by having all actions and decisions occur through a subsidiary in the less environmentally conscientious country.
c.
A and B.
d.
Neither A nor B.

ANS: C PTS: 1

14. Which of the following laws regulate the export of hazardous materials?
a.
GATT.
b.
TOSCA.
c.
FIFRA.
d.
A and B.
e.
B and C.

ANS: E PTS: 1

SHORT ANSWER

1. Assess the benefits and the detriments of environmental standards (with regard to developed and developing nations).

ANS:
Answer not provided.

PTS: 1 OBJ: Comparative Analytical Questions

2. What is meant by the "polluter pays" principle? How is it consistent with free market economics?

ANS:
Answer not provided.

PTS: 1 OBJ: Comparative Analytical Questions

3. Consider the ramifications, both legal and ethical, of a U.S. company building a plant in a former Soviet republic that has far less stringent laws pertaining to carbon-dioxide emissions.

ANS:
Answer not provided.

PTS: 1 OBJ: Comparative Analytical Questions

4. What are the similarities and differences (both in terms of rules and philosophies) between the ISO Standards and those in WTO or GATT?

ANS:
Answer not provided.

PTS: 1 OBJ: Comparative Analytical Questions

5. In the past, both the U.S. and Europe have been accused of enacting environmentally disguised trade barriers. Relying on present issues regarding beef and cattle, assess a U.S. ban on all European meat products. On beef? On meats from a region in Europe?

ANS:
Answer not provided.

PTS: 1 OBJ: Comparative Analytical Questions

6. Address the strengths and weaknesses of the U.S. government's environmental polices pertaining to pesticides (such as those addressed by the never-adopted ban on the export of unsafe pesticides).

ANS:
Answer not provided.

PTS: 1 OBJ: Comparative Analytical Questions

7. Compare and contrast the environmental standards enacted within the European Union with those of NAFTA signatories.

ANS:
Answer not provided.

PTS: 1 OBJ: Comparative Analytical Questions

8. In what ways are regional environmental treaties superior to global treaties? Inferior to them?

ANS:
Answer not provided.

PTS: 1 OBJ: Comparative Analytical Questions

ESSAY

1. Kunming Amusement Company (KAC) is a toy manufacturer located in Yunnan province in southern China. KAC routinely dumps industrial waste from its manufacturing operations in the nearby Mekong River. The Chinese government is aware of this practice but has failed to take any action to prevent to occurrence or inform neighboring states. Two months ago, there was an industrial accident at KAC's manufacturing facility, which resulted in the significant discharge of numerous toxins (including lead-based paint) into the Mekong River. KAC informed the Chinese government of this accident, but the Chinese government failed to inform downstream states of the accident. As a result, people in Laos, Thailand, Cambodia and Vietnam unknowingly utilized tainted water for numerous domestic purposes, including drinking bathing, irrigation and watering of livestock. The accident was only discovered after numerous downstream users became ill and there were massive fish kills, which resulted in subsequent testing of the water and discovery of the contamination.

If the United States responded to these events by increasing surveillance of KAC's toys for lead content, would such a ban be consistent with its obligations pursuant to GATT? Why or why not? If the United States responded to these events by banning importation of all Chinese toys manufactured in an environmentally unsound manner, would such a ban be consistent with its obligations pursuant to GATT? Why or why not?

ANS:
The increased scrutiny of KAC's toys for lead does not violate U.S. GATT obligations. Article XX(b) of GATT permits states to adopt measures necessary to safeguard the life and health of people, animals and plants within their jurisdiction. However, the ban on importation of all Chinese toys manufactured in an environmentally unsound manner would violate U.S. obligations pursuant to the GATT. As a general rule, states cannot exclude goods made in other states in an environmentally unsound manner. In this case, the ban does not protect U.S. citizens from harmful products and is unlikely to prevent the environmental harm from continuing in the future.

PTS: 1

OTHER

1. Draft a memo enumerating and discussing the "environmental risk" facing companies wishing to invest in foreign states.

ANS:
Answer not provided.

PTS: 1 OBJ: Essay/Writing Assignments

2. Reflecting on the "Circle of Poison," draft a bill regarding pesticide exports.

ANS:
Answer not provided.

PTS: 1 OBJ: Essay/Writing Assignments

3. Craft a treaty, focusing particularly on a mechanism for dispute resolution, between the U.S. and Canada that addressed the problem of acid rain.

ANS:
Answer not provided.

PTS: 1 OBJ: Essay/Writing Assignments

4. Draft a memo outlining the environmental standards with which a country must comply, and/or the method and rate of phasing in such standards, for a Caribbean or other new country desiring to apply for admission to NAFTA.

ANS:
Answer not provided.

PTS: 1 OBJ: Essay/Writing Assignments