Chapter 11 Hypotheticals
Venezuela seizes the assets of World Oil, Inc., a U.S. firm. World Oil's recovery from Venezuela in a U.S. court may be prevented by
the act of state doctrine.
The government of Korea sets a limit on the amount of rice that can be imported from the United States. This is
a quota.
Minerals Mining Company, a U.S. firm, owns property in Bolivia. The government of Bolivia seizes the property for an illegal purpose without paying just compensation. This is
confiscation
In the global environment of business, the law of a particular nation, such as Germany, China, or the United States, is classified as
national law
Mont Blanc S.A., a French firm, imports its goods into the United States and offers those goods for sale at "less than fair value." "Fair value" is the price of Mont Blanc's goods in
France.
Global Fashion, Inc., a U.S. firm, and Haute Couture, a Haitian firm, are parties to a contract that specifies what court, jurisdiction, or tribunal would decide any dispute arising under the contract. This is
a choice-of-forum clause.
Optima Medico Corporation, a U.S. firm, signs a contract with Pharma Beneficial, Ltd., a Canadian firm, to give Pharma the right to sell Optima's products in Canada. This is
a distribution agreement.
A Russian firm names itself McDonald's and begins selling hamburgers and French fries in Russia. In order to do this legally, the Russian firm would need to obtain from McDonald's
a franchising agreement.
Global Enterprise Corporation, a U.S. firm, wishes to participate, but limit its involvement, in Middle Eastern markets. Global Enterprise empowers Alem, Ltd., a United Arab Emirates firm, to enter into contracts in certain countries on Global Enterprise's behalf. This is
an agency relationship.
Sofia, a citizen of Chile, and Trent, a citizen of the United States, enter into a contract. When Trent breaches the contract, Sofia obtains an award of damages in a Chilean court. She asks a U.S. court to enforce the award. The U.S. court defers to and enforces the Chilean court's decree. This is
the principle of comity.