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What If the Facts Were Different? Suppose that, after this decision, Jazz fully compensated Fuji for the infringing sales of LFFPs. Would Jazz have acquired the right to refurbish those LFFPs in the future? Explain.

The Global Dimension How does prohibiting the importing of goods that infringe U.S patents protect those patents outside the United States?

What If the Facts Were Different? Suppose that Carnero had been an American working for BSA and BSB. Would the result in this case have been the same? Discuss.

The Legal Environment Dimension How might the court’s decision in this case frustrate the basic purpose of the Sarbanes-Oxley Act, which is to protect investors in U.S. securities markets and the integrity of those markets?

What are the ramifications for the defendants of the ruling in this case?

How might such “prudential concerns” as the principle of comity affect the eventual outcome?

Should the Foreign Sovereign Immunities Act (FSIA) preclude this lawsuit? Why or why not? Robco, Inc., was a Florida arms dealer. The armed forces of Honduras contracted to purchase weapons from Robco over a six-year period. After the government was replaced and a democracy installed, the Honduran government sought to reduce the size of its military, and its relationship with Robco deteriorated. Honduras refused to honor the contract and purchase the inventory of arms, which Robco could sell only at a much lower price. Robco filed a suit in a federal district court in the United States to recover damages for this breach of contract by the government of Honduras. Using the information presented in the chapter, answer the following questions.

Does the act of state doctrine bar Robco from seeking to enforce the contract? Explain. Robco, Inc., was a Florida arms dealer. The armed forces of Honduras contracted to purchase weapons from Robco over a six-year period. After the government was replaced and a democracy installed, the Honduran government sought to reduce the size of its military, and its relationship with Robco deteriorated. Honduras refused to honor the contract and purchase the inventory of arms, which Robco could sell only at a much lower price. Robco filed a suit in a federal district court in the United States to recover damages for this breach of contract by the government of Honduras. Using the information presented in the chapter, answer the following questions.

Suppose that prior to this lawsuit, the new government of Honduras had enacted a law making it illegal to purchase weapons from foreign arms dealers. What doctrine of deference might lead a U.S. court to dismiss Robco’s case in that situation? Robco, Inc., was a Florida arms dealer. The armed forces of Honduras contracted to purchase weapons from Robco over a six-year period. After the government was replaced and a democracy installed, the Honduran government sought to reduce the size of its military, and its relationship with Robco deteriorated. Honduras refused to honor the contract and purchase the inventory of arms, which Robco could sell only at a much lower price. Robco filed a suit in a federal district court in the United States to recover damages for this breach of contract by the government of Honduras. Using the information presented in the chapter, answer the following questions.

Now suppose that the U.S. court hears the case and awards damages to Robco, but the government of Honduras has no assets in the United States that can be used to satisfy the judgment. Under which doctrine might Robco be able to collect the damages by asking another nation’s court to enforce the U.S. judgment? Robco, Inc., was a Florida arms dealer. The armed forces of Honduras contracted to purchase weapons from Robco over a six-year period. After the government was replaced and a democracy installed, the Honduran government sought to reduce the size of its military, and its relationship with Robco deteriorated. Honduras refused to honor the contract and purchase the inventory of arms, which Robco could sell only at a much lower price. Robco filed a suit in a federal district court in the United States to recover damages for this breach of contract by the government of Honduras. Using the information presented in the chapter, answer the following questions.

In 1995, France implemented a law making the use of the French language mandatory in certain legal documents. Documents relating to securities offerings, such as prospectuses, for example, must be written in French. So must instruction manuals and warranties for goods and services offered for sale in France. Additionally, all agreements entered into with French state or local authorities, with entities controlled by state or local authorities, and with private entities carrying out a public service (such as providing utilities) must be written in French. What kinds of problems might this law pose for U.S. businesspersons who wish to form contracts with French individuals or business firms?

As China and formerly Communist nations move toward free enterprise, they must develop a new set of business laws. If you could start from scratch, what kind of business law system would you adopt, a civil law system or a common law system? What kind of business regulations would you impose?

Tonoga, Ltd., doing business as Taconic Plastics, Ltd., is a manufacturer incorporated in Ireland with its principal place of business in New York. In 1997, Taconic entered into a contract with a German construction company to supply special material for a tent project designed to shelter religious pilgrims visiting holy sites in Saudi Arabia. Most of the material was made in, and shipped from, New York. The company did not pay Taconic and eventually filed for bankruptcy. Another German firm, Werner Voss Architects and Engineers, acting as an agent for the government of Saudi Arabia, guaranteed the payments due Taconic to induce it to complete the project. When Taconic received all but the final payment, the firm filed a suit in a federal district court against the government of Saudi Arabia, claiming a breach of the guaranty and seeking to collect, in part, about $3 million. The defendant filed a motion to dismiss based on the doctrine of sovereign immunity, among other things. Under what circumstances does this doctrine apply? What are its exceptions? Should this suit be dismissed under the “commercial activity” exception? Explain.

DaimlerChrysler Corp. made and marketed motor vehicles. DaimlerChrysler assembled the 1993 and 1994 model years of its trucks at plants in Mexico. Assembly involved sheet metal components sent from the United States. DaimlerChrysler subjected some of the parts to a complicated treatment process, which included the application of coats of paint to prevent corrosion, impart color, and protect the finish. Under federal law, goods that are assembled abroad using U.S.-made parts can be imported tariff free. A federal statute provides that painting is “incidental” to assembly and does not affect the status of the goods. A federal regulation states that “painting primarily intended to enhance the appearance of an article or to impart distinctive features or characteristics” is not incidental. The U.S. Customs Service levied a tariff on the trucks. DaimlerChrysler filed a suit in the U.S. Court of International Trade, challenging the levy. Should the court rule in DaimlerChrysler’s favor? Why or why not?

E&L Consulting, Ltd., is a U.S. corporation that sells lumber products in New Jersey, New York, and Pennsylvania. Doman Industries, Ltd., is a Canadian corporation that also sells lumber products, including green hem-fir, a durable product used for home building. Doman supplies more than 95 percent of the green hem-fir for sale in the northeastern United States. In 1990, Doman contracted to sell green hem-fir through E&L, which received monthly payments plus commissions. In 1998, Sherwood Lumber Corp., a New York firm and an E&L competitor, approached E&L about a merger. The negotiations were unsuccessful. According to E&L, Sherwood and Doman then conspired to monopolize the green hem-fir market in the United States. When Doman terminated its contract with E&L, the latter filed a suit in a federal district court against Doman, alleging violations of U.S. antitrust law. Doman filed for bankruptcy in a Canadian court and asked the U.S. court to dismiss E&L’s suit, in part, under the principle of comity. What is the “principle of comity”? On what basis would it apply in this case? What would be the likely result? Discuss.

A newspaper printing press system is more than a hundred feet long, stands four or five stories tall, and weighs 2 million pounds. Only about ten of the systems are sold each year in the United States. Because of the size and cost, a newspaper may update its system, rather than replace it, by buying “additions.”By the 1990s, Goss International Corp. was the only domestic maker of the equipment in the United States and represented the entire U.S. market. Tokyo Kikai Seisakusho (TKSC), a Japanese corporation, makes the systems in Japan. In the 1990s,TKSC began to compete in the U.S. market, forcing Goss to cut its prices below cost. TKSC’s tactics included offering its customers “secret” rebates on prices that were ultimately substantially less than the products’ actual market value in Japan. According to TKSC office memos, the goal was to “win completely this survival game” against Goss, the “enemy.” Goss filed a suit in a federal district court against TKSC and others, alleging illegal dumping. At what point does a foreign firm’s attempt to compete with a domestic manufacturer in the United States become illegal dumping? Was that point reached in this case? Discuss.

Jan Voda, M.D., a resident of Oklahoma City, Oklahoma, owns three U.S. patents related to guiding catheters for use in interventional cardiology, as well as corresponding foreign patents issued by the European Patent Office, Canada, France, Germany, and Great Britain. Voda filed a suit in a federal district court against Cordis Corp., a U.S. firm, alleging infringement of the U.S. patents under U.S. patent law and of the corresponding foreign patents under the patent law of the various foreign countries. Cordis admitted, “The XB catheters have been sold domestically and internationally since 1994. The XB catheters were manufactured in Miami Lakes, from 1993 to 2001 and have been manufactured in Juarez, Mexico, since 2001.” Cordis argued, however, that Voda could not assert infringement claims under foreign patent law because the court did not have jurisdiction over such claims. Which of the important international legal principles discussed in this chapter would be most likely to apply in this case? How should the court apply it? Explain.

Go to Case 52.3, Khulumani v. Barclay National Bank, Ltd., 504 F.3d 254 (2d Cir. 2007), on pages 1078–1079. Read the excerpt and answer the following questions.
(a) Issue: What was the plaintiffs’ claim in this case?
(b) Rule of Law: On what U.S. law did the plaintiffs base this claim, and what was the defendants’ response?
(c) Applying the Rule of Law: How did the trial court respond to the parties’ contentions, what was the appellate court’s position, and why?
(d) Conclusion: Did the court issue an ultimate ruling with respect to the plaintiffs’ claim in this case? Explain.

On December 21, 1988, Pan Am Flight 103 exploded 31,000 feet in the air over Lockerbie, Scotland, killing all 259 passengers and crew on board and 11 people on the ground. Among those killed was Roger Hurst, a U.S. citizen. An investigation determined that a portable radio-cassette player packed in a brown Samsonite suitcase smuggled onto the plane was the source of the explosion. The explosive device was constructed with a digital timer specially made for, and bought by, Libya. Abdel Basset Ali Al-Megrahi, a Libyan government official and an employee of the Libyan Arab Airline (LAA), was convicted by the Scottish High Court of Justiciary on criminal charges that he planned and executed the bombing in association with members of the Jamahiriya Security Organization (JSO) (an agency of the Libyan government that performs security and intelligence functions) or the Libyan military. Members of the victims’ families filed a suit in a U.S. federal district court against the JSO, the LAA, Al-Megrahi, and others. The plaintiffs claimed violations of U.S. federal law, including the Anti- Terrorism Act, and state law, including the intentional infliction of emotional distress.
(a) Under what doctrine, codified in which federal statute, might the defendants claim to be immune from the jurisdiction of a U.S. court? Should this law include an exception for “state-sponsored terrorism”? Why or why not?
(b) The defendants agreed to pay $2.7 billion, or $10 million per victim, to settle all claims for “compensatory death damages.” The families of eleven victims, including Hurst, were excluded from the settlement because they were “not wrongful death beneficiaries under applicable state law.” These plaintiffs continued the suit. The defendants filed a motion to dismiss. Should the motion be granted on the ground that the settlement bars the plaintiffs’ claims? Explain.

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