The Paraguayan government enacted a law that specifically protects Paraguayan representatives of foreign companies. Among other things, the law requires a foreign company to make an extraordinarily large payment to the Paraguayan representative if the representative is terminated for some reason other than "just cause." The Paraguayan statute narrowly defines "just cause." There is no similar law protecting Paraguayan distributors or other representatives of Paraguayan-based enterprises.
Compañía Antártica, a Brazilian firm, terminated Electra-Amambay, its Paraguayan representative. Electra- Amambay argued that the termination was not for good cause and sought its statutory penalty. Compañía Antártica countered by arguing that the Paraguayan statute was an unconstitutional discrimination based on national origin.
1. What is the "special character" of Law 194/93 and how is its purpose achieved?
2. How does the court justify not implicating the social order of Paraguay?