ASSIGNMENT
1. Three banks that are wholly owned by the Republic of Costa Rica had issued promissory notes, payable in U.S. dollars in New York City. The notes are now in default due solely to actions of the Costa Rican government, which had suspended all payments of external debt because of escalating economic problems. Efforts by Costa Rica to curb foreign debt payment difficulties conflicted with U.S. policy for debt resolution procedure as conducted under the auspices of the International Monetary Fund. A syndicate of U.S. banks brought suit to recover on the promissory notes. The three Costa Rican banks assert the act of state doctrine as a defense. Should the doctrine apply? Explain.
2. Six U.S. manufacturers of broad-spectrum antibiotics derived a large percentage of their sales from overseas markets, including India, Iran, the Philippines, Spain, the Republic of Korea, Germany, Colombia, and Kuwait. The manufacturers agreed to a common plan of marketing, whereby territories were divided and prices for products were set. The members of the plan also agreed not to grant foreign producers licenses to the manufacturing technology of any of their “big money” drugs. May the above foreign countries recover treble damages for violation of the U.S. antitrust laws? Why or why not?
3. After reading attractive brochures advertising a package tour of the Dominican Republic, a U.S. family decided to purchase tickets for the family vacation plan. The tour was a product of four different business entities, two domestic (U.S.) and two foreign. Sheraton Hotels & Inns, World Corporation, was to provide food and lodging; Dominicana Airlines, wholly owned by the government of the Dominican Republic, which routinely flew into Miami International Airport and sold tickets within the United States, was to provide round-trip air transportation and “tourist cards” necessary for entry into the Dominican Republic; and two U.S. firms organized and sold the tour. Problems for the family began when their Dominicana flight landed in the Dominican Republic and immigration officials denied them entry. Forced to leave, the family was shuttled first to Puerto Rico and then to Haiti, where they had to secure their own passage back to the United States at additional expense. The family brings suit for battery, false imprisonment, breach of warranty, and breach of contract against all four business entities. The Dominicana Airlines asserts the act of state doctrine as a defense. Explain whether this defense applies in this situation.
4. A privately owned business in a developing country determines that current computer technology could solve many of the problems faced by its country’s private and public sectors. This business, however, lacks the capital resources necessary for research and development to acquire such computer technology, even if trained personnel were available. Furthermore, despite a sense of patriotism, the business concludes that its national government could not efficiently or effectively handle such a development project. What business forms are available to this business for acquiring sophisticated computer technology? What are the advantages and problems inherent in the various options?
5. King Faisal II of Iraq was killed on July 14, 1958, in the midst of a revolution in that country that led to the establishment of a republic subsequently recognized by the U.S. government. On July 19, 1958, the new republic issued a decree that all property of the former ruling dynasty, regardless of location, should be confiscated. Subsequently, the Republic of Iraq brought suit in the United States to obtain possession of money and stocks deposited in the deceased king’s U.S. bank account in New York City. Explain whether Iraq will be able to collect the funds
