Business law regarding federal sovereign immunity
- (a) Fred Farmer contracts to sell 1000 tons of wheat to the new country of Zorroland. Fred sent the wheat but is never paid. He files suit in U.S. District Court for breach of contract. The defendant country claims that based on the doctrine of sovereign immunity, Fred cannot sue without Zorroland’s permission. Is the defendant correct? Why or why not?
(b) Pete sets up a large manufacturing plant in Zorroland, investing several million dollars in its operations. One morning Pete reads in the newspaper that Zorroland has just confiscated all foreign-owned assets within its borders. Knowing that “confiscation” is an illegal taking of property, Pete rushes to Ace Attorney’s office to get his attorney to sue Zorroland in U. S Court. Discuss the likely ruling of the court if such lawsuit is filed, discussing the reasons and rules of law for your conclusion.
(c) Cathy orders 50 yards of white silk from Belle’s British Finery of London for use in making bridal gowns. The contract provides if a dispute arises, a British court will hear the case and British law will apply. Cathy claims the fabric sent was polyester rather than silk and sues for breach of contract in U.S. federal court. Belle’s attorney claims only a British court can hear the case. Is the attorney correct? Why or why not?